Question

Why is break-even analysis an important tool for managing any business, including colleges and universities? Please identify three areas where break-even analysis might be used at this college or any given university. For each area, identify the revenues, variable costs, and fixed costs

Answer 1

Refer the below image for the above asked question in a detailed way of explanation.

Answer: of break-even analysis - in a There are university sve many possible Environment. one or applications Below are than or become your just a & a few ideas. possible few possible Break -Even Analysis Revenues Fixed costs Variable corts 1. Break-even number of students in a class. student for a tuition class I Faculty Satary, facettes (space, class room) class room Class room Supplies, cleaning costs. 2. Break-even number of students in a dorm. Room Revenue Faculties room (space, fixtures) operating cleaning Supplies, costs 3. Break-even daily meal revenues Meal Revenue Food costs. Food service Salaries facitries (kitchen I Space, dining space) Network 4. Break-even nomber of users on a Computer network user fees Network fixed lasset cost (depreciation tronk line lease Sts. Technical support, electricity. Clean up event Ticket Revenue 5. Break-even nomber of tickets sold for & a football por basketball game costs, Staff wages, Athletics and facilities Staff Salaries, fautties | (stadium arena costs). Concession costs.