Break-even Analysis is a useful business management tool for determining the sales level of the product to earn profit for the firm.
Posts tagged as “Break-even Quantity”
Margin of Safety (MOS) measures the amount by which sales can fall before the company makes losses from a product.
To properly construct the Break-even Chart, we need to plot the curves that indicate Sales Revenue and Total Costs (TC). Use the following five rules.
Break-even Quantity shows the level of output that the business must produce and sell at which Sales Revenue equals Total Costs (TC).
Break-even Quantity shows the level of output that the business must produce and sell at which Sales Revenue equals Total Costs (TC).