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ACCOUNTING
Breakeven Analysis
INTRODUCTION
It is very important for a company to work out
whether or not they are making a profit.
We can work out by writing up a Trading , profit
and loss account.
It is often useful to be able to predict profit or
loss in the future.
We can ascertain this using break even analysis.
Broad: it is used to determine probable profit & loss at any given level of
production/sales.
It also helps to determine the amount or volume of sales to earn a desired amount or
profit.
algebraic method:
Breakeven Formula
Solution
Graphical Representation-Breakeven
Chart
Conclusion