Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
10.7k views
in Entrepreneurship by (52.2k points)
closed by

Break even analysis has a major impact on the business decision making. Comment.

1 Answer

+1 vote
by (54.5k points)
selected by
 
Best answer

1. It helps in setting profit goal and sales target. 

2. In a manufacturing environment, it helps in determining the products that are not contributing to meet the fixed expenses and thus brings up the item for discussion in management meetings about its continuity. 

3. Breakeven point is the level of sales (or revenue generated) that equals all the expenses required for generating that revenue. There is neither loss nor profit. It helps the organisation to determine the level when will it turn profitable.

Related questions

0 votes
1 answer
0 votes
1 answer
asked Feb 8, 2019 in Entrepreneurship by Aesha (52.5k points)
0 votes
1 answer

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

Categories

...