break even analysis

Jun 14th, 2016
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The essay talks about break even analysis, the assumptions associated with it. It's use and what it helps determine in a business.

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BREAK-EVEN ANALYSISBreak-even analysis, sometimes known as cost-volume-profit analysis, is the relationship study between fixedcosts, volumes of sales and returns or profits at different levels in a business venture. Break-even analysis is basedon different assumptions which can be summarized as:1. Variable costs are assumed constant and the total variable costs will only increase with an increase innumber of units being produced.2. Total fixed costs are constant and will decrease when there is an increase number of units being produced3. The sales revenue per unit is assumed constant a

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