break-even

Examples of break-even in the following topics:

• Break-Even Analysis

  • Break-even analysis tells a company how much it needs to sell in order to pay for an investment.
  • By inserting different prices into the break-even formula, you will obtain a number of break-even points-- one for each possible price charged.
  • In the above graph, points A, B, and C are the break-even points.
  • The break-even quantity at each selling price can be read off the horizontal axis and the break-even price can be read off the vertical axis.
  • Employ a break even analysis in the context of a company's production process

• Break-Even Analysis

  • The break-even point is the point at which costs and revenues are equal.
  • The break-even point is one of the simplest analytical tools in management.
  • A better understanding of break-even, for example, is expressing break-even sales as a percentage of actual sales.
  • Some limitations of break-even analysis include:
  • Analyze the concept of break even points relative to pricing decisions

• Break-Even Analysis

  • Break-even analysis can determine the minimum amount a company needs to sell in order to cover its costs with no gains or losses.
  • As long as a business can cover its minimum costs, it is "breaking even" and can remain in business even if it is not turning a profit.
  • Break-even analysis lets companies compare their production or sales with the minimum point (the break-even point) they need to achieve in order to stay in business.
  • Break-even points can be determined based on sales and total costs.
  • Employ a break-even analysis and derive a break-even point when analyzing a business initiative or project

• Break-Even Analysis

  • The break-even point (BEP) is the point where expenses and revenue intersect.
  • In the linear model, the break-even point is equal to the fixed costs divided by the contribution margin per unit .
  • The break-even point is one of the simplest yet least used analytical tools in management.
  • For an even clearer understanding, break-even sales can be expressed as a percentage of actual sales.
  • This graphs depicts an example of a break-even point based on sales and total costs.

• Benefits and Risks of Operating Leverage

  • The use of operating leverage can multiply profits when a given break-even point is reached, but it can intensify losses when it is not.
  • Therefore, once a certain break-even point is reached, the contribution that sales make to profits is much higher than it would be if a greater portion of the costs were variable.
  • Problems can arise if a company has very high fixed costs, and if a company has difficulty selling enough units to break even on a particular investment.
  • Just as the use of operating leverage can lead to greater profits, if a company is able to reach a given, break-even point, so too can the use of leverage drastically multiply losses if that point is not reached.

• Long Run Outcome of Monopolistic Competition

  • In the long run, firms in monopolistic competitive markets are highly inefficient and can only break even.
  • Second, the firm will only be able to break even in the long-run; it will not be able to earn an economic profit .
  • The result is that in the long-term the firm will break even.

• Financial Applications of Quadratic Functions

  • If a financier wanted to find the number of sales required to break even, the maximum possible loss (and the number of sales required for this loss), and the maximum profit (and the number of sales required for this profit), they could simply reference a graph instead of calculating it out algebraically.
  • The break-even points are between $15$ and $16$ sales, and between $484$ and $485$ sales.

• Clustering and Concept Mapping

  • If you are having trouble breaking a big topic down into smaller ones, you might want to try clustering.
  • You can even break them down into further levels of detail.
  • In this way, you can break your general topic down from "explaining gardening" to something like "explaining how to purchase a sunflower plant."

• Peroxisomes

  • Peroxisomes neutralize harmful toxins and carry out lipid metabolism and oxidation reactions that break down fatty acids and amino acids.
  • They also carry out oxidation reactions that break down fatty acids and amino acids.
  • Free radicals are reactive because they contain free unpaired electrons; they can easily oxidize other molecules throughout the cell, causing cellular damage and even cell death.

• The normal approximation breaks down on small intervals

  • Caution: The normal approximation may fail on small intervals The normal approximation to the binomial distribution tends to perform poorly when estimating the probability of a small range of counts, even when the conditions are met.