what does a positive break-even analysis mean?
Answers
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.
Hope it's helpful.☺✌
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.