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Unformatted text preview: fixed and variable costs but result in a zero profit is the breakeven point. Breakeven analysis is performed to find the level of activity that is required to reach the breakeven point. The breakeven point can be found using CVP analysis. The breakeven point can be calculated using either total revenues or number of units. From the analysis the manager can determine which volume needed, revenue required, increase or decrease costs, products to concentrate on and, how much to budget for costs. To achieve a breakeven point a manager might try to lower costs, increase prices, or ramp up production in order to increase output. The breakeven point for multiple products can be found by analyzing each product....
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- Spring '12
- Income Statement