W2A1 - I chose an article called Break-Even Analysis What...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
I chose an article called, “Break-Even Analysis: What, Why, and How” by Martin, 2014. He begins to explain what the break-even analysis is and why it is so important in businesses. His definition of break-even analysis is a business tool widely used across all industries to evaluate business performance in terms of costs, since this is a supply-side analysis (Martin, 2014). Basically, break-even point can be determined by calculating the point at which revenue received equals the total costs associated with the production of the goods or services. Martin’s formula of break-even point is; Break-even point = fixed costs/ (unit selling price – variable costs) In the South University’s online lectures it states, “The breakeven point is the point when the profit of the company is equal to $0. Sales = variable costs + fixed costs This article explains a more in depth example of the different types of costs. Including definitions for variable costs, fixed costs, and even revenue. Then Martin discuss how to calculate contribution margin, which I learned this week in my course. With the contribution
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern