Break Even Analysis is a tool to find the number of products to be sold to cover the fixed and variable cost of production. Break even Point refers to the point of sale where net income is equal to net expenses. It shows No profit no gain. It is used to measure the Margin of Safety.
Break Even Analysis is useful to in some cases:
ðŸ”°To Start a new Business based on analysis.
ðŸ”°Creating a new Product with some modification.
ðŸ”°For changing the business model.
ðŸ”°To ascertain the variation of profit along with price hike.
ðŸ”°To determine the cost of Shut down point.
ðŸ”°To identify the capacity of a company in case of a break even situation.
I have created a Break Even Analysis Chart along with a Fluctuation schedule that shows the impact of net income with increasing Units .
Hope, the Sheet covers every component of Break Even Analysis. If there are any suggestions please share your valuable feedback for the same at email@example.com.