A break-even analysis is used to determine the break-even quantity of a firm's output by examining the
Question:
A break-even analysis is used to determine the break-even quantity of a firm's output by examining the relationships among the firm's cost structure, volume of output, and profit. Break-even quantity may be calculated in units or sales dollars. The break-even point indicates the point of sales or units at which earnings before interest and taxes (EBIT) is equal to zero.
In this paper you will propose selling 2 new products or services as an entrepreneur and conduct a breakeven analysis for each idea.
Tip: If you are stuck on ideas, try watching some episodes of Shark Tank.
Include in your paper the following sections:
1. Brief introduction to the paper
2. The break-even analysis for 2 new products/services in either units or sales dollars (pick either units or sales dollars for both for better comparison)
3. Discussion of analysis results: what do the results of your calculations mean, what should you do, and what might the proposals more appealing financially?
4. Brief conclusion
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078110917
9th edition
Authors: Ronald W. Hilton