Brilliant Accounting Solutions Break Even Analysis

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Business Finance

Description

A break-even analysis is an analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even analysis calculates what is known as a margin of safety, the amount that revenues exceed the break-even point.

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Explanation & Answer

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1



Create and name your own business

Business Name: Brilliant Accounting Solutions.


Describe your business’ mission statement.

Mission Statement: To provide accounting solutions to small and medium enterprises.


Business operation description for break-even analysis

1. Describe your product
Our company develops accounting software which is tailored to meet the accounting needs
of small and medium enterprises. In most cases, small and medium size enterprises do not
have a reliable accounting system especially in their start-up phase. Owners and managers
of these businesses usually maintain manual records or use basic spreadsheets to maintain
business records. Our business is structured to assist business owners and managers to have
a reliable accounting system at a low cost. Our company develops the accounting software
called Quick Accounts (QA) and sells it to business owners. The software is uniform but it
can be customized to specific business needs at no additional cost.
2. Discuss fixed costs
Fixed costs are those costs which do not change with the different levels of production.
Our fixed costs include rent on office buildings and computer equipment. Currently, we
operate a small office since we want to m...


Anonymous
Just what I was looking for! Super helpful.

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