1 / 3

Break Even Analysis

Break Even Analysis. AS Business Studies Produc. Benefits. Shows at a glance break-even output, profit and loss Shows profit or loss made at different output levels Shows output needed to meet profit targets Simple and inexpensive to produce

huy
Download Presentation

Break Even Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Break Even Analysis AS Business Studies Produc

  2. Benefits • Shows at a glance break-even output, profit and loss • Shows profit or loss made at different output levels • Shows output needed to meet profit targets • Simple and inexpensive to produce • Can show impact of changes to price or costs • Can be used to support bank loan applications

  3. Limitations • Assumes all output is sold • Cannot predict effect on demand when price is changed • Costs and prices are not constant over time • Only as accurate as the figures on which it is based

More Related