Break-even analysis tells us how many units must be sold in order for a project to break even on a cash flow or an accounting basis.

Question

Quizplus · Accepted Answer

Break-even analysis is used to determine the point at which the revenues generated from a project or product equal the total costs associated with the project or product. This analysis can be used to determine the minimum number of units that must be sold to break even on a cash flow basis or an accounting basis.

Break-Even Analysis Tells Us How Many Units Must Be Sold