Seminar On Break Even Analysis

Break Even Analysis In Economics

An enterprise, whether or not a profit maximizer, often finds it useful to know what price (or output level) must be for total revenue just equal total cost. This can be done with a breakeven analysis. Strictly speaking, this analysis is to determine the minimum level of output that allows the firm to break even, but it could be used for some other tasks.In this Appendix, we introduce:

- The algebra of break-even analysis

- Break-even diagram

- Operating leverage

Break-even analysis is a supply-side analysis; that is, it only analyzes the costs of the sales. It does not analyze how demand may be affected at different price levels.

For example, if it costs $50 to produce a widget, and there are fixed costs of $1,000, the break-even point for selling the widgets would be:

If selling for $100: 20 Widgets (Calculated as 1000/(100-50)=20)

If selling for $200: 7 Widgets (Calculated as 1000/(200-50)=6.7)

In this example, if someone sells the product for a higher price, the break-even point will come faster. What the analysis does not show is that it may be easier to sell 20 widgets at $100 each than 7 widgets at $200 each. A demand-side analysis would give the seller that information.

Click Here To Download Full Seminar Kit

Key: Break Even Analysis ppt, Break Even Analysis presentation, Break Even Analysis pdf, Break Even Analysis seminar report, Break Even Analysis slide presentation, Break Even Analysis seminar report with slides, Break Even Analysis explanations with examples,Management seminar download,Free management seminar and projects download,Seminar on  Break Even Analysis ppt.

Management seminar topics,management seminar with slide presentation,Management ppt