Break-even analysis calculates the point at which revenues cover costs under different "what it" conditions.

Question

Quizplus · Accepted Answer

Break-even analysis is a tool used to determine at what point a company will be able to cover all of its costs and begin to make a profit. It takes into account various factors, such as price, fixed and variable costs, and sales volume, to determine the minimum level of sales that a company must achieve in order to break even. By analyzing different scenarios and conditions, companies can gain insight into the factors that will have the greatest impact on their profitability and adjust their strategies accordingly.

Break-Even Analysis Calculates the Point at Which Revenues Cover Costs