a shop sells cutlets which excel tool can tell the shopkeeper the number of cutlets he should sell to earn a given profit?
Answers
Answer:
Explanation:
Break-even analysis is the study of what amount of sales, or units sold, is required to break even after incorporating all fixed and variable costs of running the operations of the business. Break-even analysis is critical in business planning and corporate finance, because assumptions about costs and potential sales determine if a company (or project) is on track to profitability.
As a simple example, let's take a lemonade stand. No matter how much lemonade you sell, you still need to pay the same amount of rent each month. So, rent is a fixed cost. Compare this to your expenditure on lemons: You will only buy the amount of fruit you need to satisfy the lemonade demand you predict for your business. In summer, this may be more lemons; in winter, fewer lemons. So that makes lemon purchases a variable cost. Variable costs rise in proportion to your business.