Business Studies, asked by angelicatanghal11, 1 month ago

what does a positive break-even analysis mean?​

Answers

Answered by XxProperPatollaxX
3

Break-even analysis tells you how many units of a product must be sold to cover the fixed and variable costs of production. The break-even point is considered a measure of the margin of safety. Break-even analysis is used broadly, from stock and options trading to corporate budgeting for various projects.

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Answered by studylover001
5

Answer:

Question :

What does a positive break-even analysis mean?

Answer :

Break-even analysis is useful in determining the level of production or a targeted desired sales mix.

Your break-even point is the point at which total revenue equals total costs or expenses. At this point there is no profit or loss — in other words, you 'break even'.

Break-even analysis looks at the level of fixed costs relative to the profit earned by each additional unit produced and sold. In general, a company with lower fixed costs will have a lower break-even point of sale.

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