What is a break even analysis? Why is it important? In your present job, or a former job, how can incremental analysis be used?
A break-even analysis is a financial tool which helps to
determine at what stage the company, or a new service or
a product, will be profitable. In other words, it’s a financial
calculation for determining the number of products or services a
company should sell to cover its costs (particularly fixed costs).
Break-even is a situation where you are neither making money nor
losing money, but all your costs have been covered.
Break-even analysis is useful in studying the relation between the
variable cost, fixed cost and revenue. Generally, a company with
low fixed costs will have a low break-even point of sale. For an
example, a company has a fixed cost of $.0 (zero) will
automatically have broken even upon the first sale of its
product.
Breakeven analysis is important for the following reasons:
Additionally, break-even analysis is very useful for knowing the
overall ability of a business to generate a profit. In the case of
a company whose breakeven point is near to the maximum sales level,
this signifies that it is nearly impractical for the business to
earn a profit even under the best of circumstances.
In the job Incremental analysis can be used to help a business make short-term decisions. The process looks at the incremental changes in costs and revenues arising from the alternative options available, and selects the one which gives either the lowest cost or the highest net income
What is a break even analysis? Why is it important? In your present job, or a...
explain what a break even analysis is. Why is this tool so important to the small business owner? What information does it provide to the small business owner. How can the small business owner use this tool?
Create a Cost-Volume-Profit chart. Break-even analysis is an important part of your fiscal education. Select an item or product used in your healthcare organization and describe how you would calculate the break-even point. This could be the use of a sterile instrument tray, an admission/registration software product, outsourced transcription, or even a new EMR. Describe why this break-even information is useful. Create a graph showing your break-even point. Recommended 300 to 400 words
Create a Cost-Volume-Profit chart. Break-even analysis is an important part of your fiscal education. Select an item or product used in your healthcare organization and describe how you would calculate the break-even point. This could be the use of a sterile instrument tray, an admission/registration software product, outsourced transcription, or even a new EMR. Describe why this break-even information is useful. Create a graph showing your break-even point. Recommended 300 to 400 words
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
How important is it for businesses to know the break even points of the goods or services they sell? How can break even analysis be used to increase profits?
What is the purpose of the job analysis purpose? What job analysis methods exist? In your opinion which is most effective and why? Why is job analysis important to the organization? How does job analysis help with the job description and Selection process?
Break-even analysis is an important tool for managing any entity (not just businesses), including colleges and universities. Think about all the activities that occur on a college campus. Required - Provide your answers to the following questions: 1. Identify three areas where break-even analysis might be used at Polk State College. 2. For each area, identify the revenues, variable costs, and fixed cost
why is the level of sales so important when a company considers their break down even analysis and their net profit?
Discuss what a break-even analysis is. What are the advantages and disadvantages of this tool? How is it used by managers? How do you see it being used at your organization?
What is break-even analysis? What is the difference between a linear and non-linear break-even analysis? Discuss the assumptions that underlie a break-even analysis, especially a linear break-even analysis, and explain what happens if the assumptions are relaxed?