Breakeven Analysis

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A method used to evaluate the cost-effectiveness of purchasing new equipment or ‘buying into’ a new technology
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A demographic review of its participants was also carried out to inform product development while a traditional break even analysis was done to gauge financial tolerances for the programme.
"The financial workings of the project give a projected figure of about 25 to 28 percent in gross profit and 12 to 14 percent in net profit with a debt service coverage ratio of about 2.5 to 2.7 and break even analysis of 65 to 70 percent," Desai said.
Another tool which will prove useful is break even analysis. The break-even point represents the volume of sales at which the business makes neither a profit nor a loss.
Frank includes a Profit and Loss Statement, Cash Flow Statement, Sales Forecast Statement, Balance Sheet, Business and Personal Financial Statement, Schedule of Real Estate, Operating Budget and much more, including: Profit and Loss Analysis, Cash Flow Analysis, Assets and Liabilities Analysis, Break Even Analysis and Stock Value Analysis.
Chapter 18 explains the various tools of Financial Decision Making specifically Capital Budgeting and Break Even Analysis. The last chapter discusses various Forecasting Models.