(4 of 8) Break-Even Analysis

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􀀹 overview 􀀹 contribution margin approach 􀀹 equation approach 􀀹 cost-volume-profit chart 􀀹 target net profit analysis 􀀹 margin of safety 􀀹 operating leverage

break even analysis

point where the net income is equal to zero.
Or when Total Sales = Total Costs

cost-volume-profit analysis

sometimes referred to as break-even analysis. The break-even point is the point where total sales revenue equals total costs (variable and fixed) or the point where the total
contribution margin equals total fixed costs. In other words, how many units do we need to sell so that our contribution margin equals total fixed costs?

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