Value of Breakeven Analysis

• Value of Breakeven Analysis:

  • Helps management & finance-providers better understand the viability and risk of a business or business idea
  • Illustrates the importance of keeping fixed costs down to a minimum
• Value of Breakeven Analysis:

  • Break-even analysis can show the consequences for a business in terms of changing profits (or losses) that may result from changes in fixed and variable costs or alterations in the firm’s selling price.