Business Finance
break even query, business and finance assignment help

Question Description

Break-even analysis is one of the most fundamental tools for managing any kind of business unit. Consider the management of SUNY Canton. Brainstorm some applications of break-even analysis at SUNY Canton. Identify three areas where break-even analysis might be used. For each area, identify the revenues, variable costs, and fixed costs that would be used in the calculation.

Answer questions in short paragraphs. 400 words will be great.

ch_19.pdf

Final Answer

Attached.

Running head: Break-even Analysis

The Application of Break-even Analysis

[Your Name]
[Your Department]
[Your Institution]
[Date]

Break-even Analysis

2

Definition of Break-even Point
Break-even point is the level of sales at which profit is zero. According to this definition,
at break-even point sales are equal to fixed cost plus variable cost. This concept is further explained
by the the following equation:
[Break even sales = fixed cost + variable cost]
The break-even point is the level of operations at which a company’s revenues and expenses are
equal. At break-even, a company reports neither income nor a loss from operations.

Figure 2. Break-even equation

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