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Topic: Break even analysis


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  The Break-Even Calculator
On the surface, break-even analysis is a tool to calculate at which sales volume the variable and fixed costs of producing your product will be recovered.
Another way to look at it is that the break-even point is the point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company.
Lucky for you, another MBA partner has been doing additional research and discovered that because Clevelanders are concerned with their health, they are willing to pay up to $2.79 for a gourmet burger of the top quality you propose.
connection.cwru.edu /mbac424/breakeven/BreakEven.html   (848 words)

  
  Break even analysis - Wikipedia, the free encyclopedia
The break even point for a product is the point where total revenue received equals total costs associated with the sale of the product (TR=TC).
The break even points (A,B,C) are the points of intersection between the total cost curve (TC) and a total revenue curve (R1, R2, or R3).
The break even quantity at each selling price can be read off the horizontal, axis and the break even price at each selling price can be read off the vertical axis.
en.wikipedia.org /wiki/Break_even_analysis   (558 words)

  
 Break-Even Method of Investment Analysis
Break-even analysis is a useful tool to study the relationship between fixed costs, variable costs and returns.
There may be a tendency to continue to use a break-even analysis after the cost and income functions have changed.
The major benefit to using break-even analysis is that it indicates the lowest amount of business activity necessary to prevent losses.
www.ext.colostate.edu /pubs/farmmgt/03759.html   (1031 words)

  
 Break Even Analysis
Break Even Analysis is one of those things that many Marketing students are afraid of trying to understand because it involves a little bit of math - however the math is simple - so try to grasp the concept cause it is important that you know how to do this.
Break Even Analysis is explained most mainstream marketing textbooks - there are also many good websites that explain it too - and they give some simple examples - as seen below.
Break Even Analysis is sometimes difficult to calculate precisely in the REAL WORLD - beeeeecause, there is nothing in the mathematics of the calculation that allows for the "COMPETITIVE ENVIRONMENT".
www.witiger.com /marketing/breakevenanalysis.htm   (483 words)

  
 Will My Business Make Money? -- Page 1   (Site not responding. Last check: 2007-10-17)
Preparing what's known as a "break-even analysis," or "break-even forecast," as well as several other financial projections, can help you determine whether or not your business will succeed.
A break-even analysis shows you the amount of revenue you'll need to bring in to cover your expenses, before you make even a dime of profit.
The good news is that a break-even analysis is part of every business plan, so if you start by doing a break-even analysis now, you'll have already started work on your business plan.
www.nolo.com /encyclopedia/articles/sb/breakeven.html   (331 words)

  
 Break-even Analysis & Calculator   (Site not responding. Last check: 2007-10-17)
And last, break-even analysis is often a crucial part of preparing annual budgets to achieve profit goals.
Further, when combined with an annual budget, you can use break-even analysis to support requests from your banker for continued financing of operations or additional financing to acquire new equipment.
You can use your knowledge of Break-even Analysis to make more informed decisions when pricing your products, selecting vendors, advertising, buying equipment, etc. Further, we suggest you use this analysis to assist you in determining profit goals and budgeting your annual business activities to achieve those goals.
www.cpawizard.com /s_breake.htm   (1034 words)

  
 Break-Even Analysis
Break-even analysis is used in cost accounting and capital budgeting to evaluate projects or product lines in terms of their volume and profitability relationship.
The first step in determining the level of sales needed for a small business to break even is to compute the contribution margin, by subtracting the variable costs per unit from the selling price.
This perspective of analysis may be employed where the analyst is highly confident of the estimates for price and costs, but feels less certain about the assessment of market demand.
www.referenceforbusiness.com /small/Bo-Co/Break-Even-Analysis.html   (809 words)

  
 Break-Even Analysis: Projections - Small Business Accounting
Even the mature business would be wise to look at their current break-even point and perhaps find ways to lower that benchmark to increase profits.
You may do a break-even analysis before you even begin your business and determine that your gross margin will come in at a certain percentage and your fixed expense budget will be set at a certain level.
You will then be able to establish that your business will break even (and then go on to a profit) at a certain level of sales volume.
www.businesstown.com /accounting/projections-breakeven.asp   (892 words)

  
 introduction to break-even analysis
Break-even analysis is a technique widely used by production management and management accountants.
It is based on categorising production costs between those which are "variable" (costs that change when the production output changes) and those that are "fixed" (costs not directly related to the volume of production).
In other words, even if the business has a zero output or high output, the level of fixed costs will remain broadly the same.
www.tutor2u.net /business/production/break_even.htm   (699 words)

  
 HBS Toolkit Break-Even Analysis - HBS Working Knowledge
The first calculation is break-even analysis where your goal is to determine how many units you must sell to recover all of your fixed costs.
The Harvard Business School Toolkit is a suite of tools and information resources designed to provide a consistent source of high-quality analysis and electronic self-instructional resources.  It was prepared originally to help HBS MBA students with case analysis at various stages in the course of their studies at the School.
Analysis: The analysis screen is the primary data input screen and where many of the tools will also provide their output data.
hbswk.hbs.edu /archive/1262.html   (1215 words)

  
 Business Plans
When attempting to determine the prospect of success for a new operation, the analysis of the break-even point may indicate the advantages or disadvantages in modifying the proposed level of operation.
The break-even point for each price will be calculated and an analysis of the results will determine how reasonable they are and which is to be used when forecasting and budgeting.
Break-even analysis and techniques are the tools that finally tell the business owner or manager when he/she is making a profit.
www.bizbound.com /breakeven.htm   (1282 words)

  
 Bean Counter-Cost-Volume-Profit Relationships
Simple online break even analysis calculator designed to demonstrate how many units of your product must be sold to make a profit.
The Break-Even Analysis Module illustrates the fundamentals of break-even analysis, a time-tested technique that is often used by companies and consultants to evaluate alternative business strategies and tactics.
More sophisticated variations of break-even analysis are used by companies around the world, but the principles remain the same as are illustrated here.
www.dwmbeancounter.com /breakeven.html   (1377 words)

  
 Pricing and Breakeven Analysis, break even analysis and price elasticity.
Pricing and Breakeven Analysis uses break even analysis to calculate your current business break even point using revenue, variable, and fixed cost inputs.
Each break even chart is a graphical display of the break even analysis including the break even point considering price elasticity.
Pricing and Breakeven Analysis incorporates break even analysis, break even charts, break even points and price elasticity to determine the impact of pricing on your business and optimum pricing.
www.bizpeponline.com /PricingBreakeven.html   (852 words)

  
 Break-Even Analysis
A break-even analysis examines the interaction among fixed costs, variable costs, prices, and unit volume to determine that combination of elements in which revenues and total costs are equal.
Generally, an initial break-even analysis focuses on a relatively narrow range of sales volume in which variable costs are simple to calculate.
This has been a very brief overview of how breakeven analysis can be used in helping the entrepreneur better understand the relationship of the financial factors involved in measuring the feasibility of a proposed venture.
www.jbv.com /lessons/lesson09.htm   (848 words)

  
 Break-even Point and Break-even Analysis
The Break-even Point analysis must not be mistaken for the Payback Period, the time it takes to recover an investment.
In Value Based Management terms, a break-even point should be defined as the Operating Profit margin level at which the business / investment is earning exactly the minimum acceptable Rate of Return, that is, its total cost of capital.
The main advantage of break-even analysis is that it explains the relationship between cost, production volume and returns.
www.12manage.com /methods_break-even_point.html   (673 words)

  
 Break Even Analysis
To find out if at which point when the meeting revenue will cover meeting expenses, you can use a break even analysis.
If you know the total amount of fixed expenses, the price of admission, and the variable costs per unit (or person), then you can find the minimum number of attendees that are needed to cover your expenses.
If you know the total amount of fixed expenses, the number of attendees expected, and the variable costs per unit (or person), then you can find the minimum price of admission to charge to cover your expenses.
www.eventageous.com /planning_guides/breakeven.htm   (172 words)

  
 Should I pay points on my mortgage? break even calculator, analysis
However, in the case of a refinance, the points are NOT tax-deductible, but have to be amortized over the life of the loan.
This results in few tax benefits or none at all, so there is little or no effect on the time to break even.
The zero-point/zero-fee loan eliminates the need to do a break-even analysis since there is no up-front expense that needs to be recovered.
www.choicefinance.net /faq/pay-mortgage-points.htm   (1067 words)

  
 Break Even Analysis - Three Options
To figure the break even point, you should know the program’s expected response rate, the program’s expected conversion rate, and the lifetime value of a new customer.
So,, you break even on the program at a cost of $30.00 for each new customer.
With each marketing program you implement, if you are aware of your break even point - the point at which the program becomes profitable to you - and make decisions based on those profits, your business will grow.
www.websitemarketingplan.com /online/breakeven.htm   (918 words)

  
 Arkansas SBDC: BizFacts #1509 - IMPROVING DECISION MAKING WITH SIMPLE BREAK-EVEN ANALYSIS
Break-even analysis is a very useful tool because it can help you understand the sources of profit in your business.
If it seems physically impossible to produce the number of units needed to break even at the lowest item price in your range of reasonable prices in the actual marketplace, this is a good advance indication of a potential problem.
Despite its limitations, break-even analysis is a very useful tool with which to approach a variety of decision problems.
asbdc.ualr.edu /BizFacts/1509.asp   (5009 words)

  
 Conducting an e-Learning Break Even Analysis   (Site not responding. Last check: 2007-10-17)
The value of this measurement is usually in terms of the number of students it will take to train in order to reach break-even.
Note that in this analysis, the calculated cost to deliver the training to each student factors in both standard delivery costs, as well as administration and maintenance costs.
The final result of 263 students as the break-even point is another indicator that the investment in e-learning is a wise one since in ourmodel case there are 800 total students to be trained.
www.e-learningguru.com /articles/art5_5.htm   (340 words)

  
 CYBERCHEFS' BREAK EVEN ANALYSIS FOOD COST PAGE
This section addresses the concept of break-even analysis, a type of quantitative financial analysis.
To apply break-even analysis it will be up to you to decide which elements or inputs are important or relevant to your calculation.
An example of fixed cost would be the rent or lease expense on the property and building that continues to be paid even when you shut down each year for one month.
www.marscafe.com /php/foodcost/breakeven.php   (1006 words)

  
 break-even analysis Definition
Break-even analysis focuses on the relationship between fixed cost, variable cost, and profit.
These documents, also known as 10Ks, give a detailed picture of a company's financial condition, and should be read by any investor considering investing in a company's stock.
They include management's discussion and analysis, stock price history, and financial data like revenues, expenses, earnings, margins, and balance sheet.
www.investorwords.com /574/break_even_analysis.html   (178 words)

  
 Break-Even Analysis
Each of these variables is interdependent on the break-even point analysis.
You may like using the JavaScript for performing some sensitivity analysis on the above parameters to investigate their impacts on your decision-making.
The fair use, according to the 1996 Fair Use Guidelines for Educational Multimedia, of materials presented on this Web site is permitted for non-commercial and classroom purposes only.
home.ubalt.edu /ntsbarsh/Business-stat/otherapplets/BreakEven.htm   (458 words)

  
 Break Even Analysis Report
Not just to break even, unless you are a nonprofit organization.
A good break-even analysis report will tell you if it is worth your time, energy, and money to actually startup that business idea of yours or not, because it will tell you if you're going to make a profit or not.
Try this break even calculator to help calculate variable costs.
www.candobiz.com /break-even-analysis.html   (1160 words)

  
 Break Even Analysis Definition. Define Break Even Analysis. What is Break Even Analysis?
Break Even Analysis refers to the calculation to determine how much product a company must sell in order to break even on that product.
It is an effective analysis to measure the impact of different marketing decisions.
The cannibalization rate refers to the percentage of new product that would have gone to the old product, this must be lower than the break even cannibalization rate in order for the change to be profitable.
www.learnthat.com /define/view.asp?id=280   (470 words)

  
 DIY Break Even Analysis
The Break Even Analysis tool provides you with a very simple way to answer many of your business questions.
Annualize your current year overhead and gross profits and compare to last year to see the trend and it's effect on your break even.
Perform "what if" type analysis such as what if my gross profit was X instead of Y, what would my break even be and further what would the break even be with a planned profit goal?
home.earthlink.net /~johnnybisme/myweb/prod04.htm   (186 words)

  
 Break-Even Analysis
The Break-even Analysis table calculates a break-even point based on fixed costs, variable costs per unit of sales, and revenue per unit of sales.
The analysis requires a single number, and if you build your Sales Forecast first, then you will have this number.
The break-even analysis depends on assumptions made for average per-unit revenue, average per-unit cost, and fixed costs.
www.businessknowhow.com /startup/break-even.htm   (796 words)

  
 [No title]   (Site not responding. Last check: 2007-10-17)
Break-even Analysis looks at the relationship between fixed costs, variable costs, and returns, and will tell you exactly when the project will begin to save money.
In other words, if you have a break-even of 245, that means for students number 1 - 244 the cheaper solution would be the classroom-based one.
Often e-learning solutions will yield huge savings from a reduction in travel, and if total learner time is reduced, you will see a lower salary or opportunity cost.
www.e-learningguru.com /tools/break_even.xls   (209 words)

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