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Break-even analyses Links to an external site.help business owners determine when they will begin to turn a profit and help them price their products with
Break-even analyses Links to an external site.help business owners determine when they will begin to turn a profit and help them price their products with that in mind. It provides a dynamic overview of the relationships among revenues, costs, and profits. However, typical variable and fixed costs differ widely among industries. This is why a comparison of break-even points is generally most meaningful among companies within the same industry, and the definition of a "high" or "low" break-even point should be made within this context. Explain how fixed and variable costs might affect analyses of a new product or service. Lastly, explain why a break-even analysis would be helpful to the company in this situation
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