Perform an Internet search using the term breakeven analysis

Perform an Internet search using the term break-even analysis. Select and read a case study or article from the results of your search. (Make sure that you do not select an instructor\'s lecture notes or a class assignment from the results of your search.) Summarize the case study or article, and relate the ideas of the article to what you have learned this week in this course.

Solution

break even analysis is the study of a firms initial investment and its recovery. it is the point where the investment is equals to its cash revenues. at this point the firm stands at no profit and no loss position. at this point the total cost curve will intersect the total revenue curve. both the curves where they intersect is called break even point. above this point will represents profits of the firm and below this point is called as loss zone to the firm.

it will be measure in terms of quantity of output and the amount of money also. where the total revenues are equals to total investments is called break even point.

i can say that every firm initially wants to be reach break even point and later they works to get profits. so beyond the point will provides profits to the firm.