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Cost-volume-profit analysis

OBJECTIVES. You should be able to:. Distinguish between fixed costs and variable costs. Use knowledge of this distinction to deduce the break-even point for some activity. Make decisions on the use of space capacity, using knowledge of the relationship between fixed and variable costs.

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Break-even Analysis

Break-even Analysis. Use quantitative & graphical methods to calculate break-even quantity. Define & interpret the margin of safety. . What is Break-even?. Total Costs = Total Revenue Measure of quantity How many units need to be sold in order to cover all product costs?

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Cost-volume-profit analysis

Break-even Analysis