F-370_WEEK1 DQ 3 & 4 - 1595

Solution Posted by
Solution Detail
Price: $8.00
  • From: ,
  • Posted on: Tue 13 Mar, 2012
  • Request id: # 1573
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description
Solution Description





What is the break-even point? What decisions does the break-even point help an organization make? What actions might an underperforming organization take to reach the break-even point?




A company's break-even point is the amount of sales or revenues that it must generate in order to equal its expenses. In other words, it is the point at which the company neither makes a profit nor suffers a loss. Calculating the break-even point (through break-even analysis) can provide a simple, yet powerful quantitative tool for managers. In its simplest form, break-even analysis provides insight into whether or not revenue from a product or service has the ability to cover the relevant costs of production of that pr