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CASE STUDY Break even analysis which is cost –volume-profit analysis is used to plan and assist in decision making by clarifying the effect of changes in volume and business profitability. In calculating breakeven fixed cost and contribution by unity is calculated; Break-even-point = fixed cost …Read more
Many factors come into play in determining business success. One of them is the financial factor. For a company to set financial goals it is crucial that its management know in detail the products or services they sale or provide. This is the analysis of …Read more
The above breakeven analysis of each variable displays the combination of the variables that result in a break-even position for the Beta project at ABC Corporation. For example, the 6% sales growth rate would result in a break-even for the project if the operating expenses …Read more
The break-even point is a business terminology which refers to the level of output or activity wherein a firm’s total revenue exactly equals its total cost. At this point, the business entity covers all its expenses but earns no profit. The operating income is therefore …Read more