stheronell
May 2, 2009, 02:41 PM
Discuss the critical assumptions underline the break even analysis
ROLCAM
May 3, 2009, 03:42 AM
The assumption of break even is created by the formula :-
Sales less Cost of Sales is equal to ZERO %.
morgaine300
May 4, 2009, 12:44 AM
The assumption of break even is created by the formula :-
Sales less Cost of Sales is equal to ZERO %.
Not true. Cost of Sales doesn't include operating expenses.
Furthermore, when doing break-even analysis, it isn't even done this way. It's done by variable and fixed costs.