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  • May 2, 2009, 02:41 PM
    stheronell
    Breakeven analysis
    Discuss the critical assumptions underline the break even analysis
  • May 3, 2009, 03:42 AM
    ROLCAM

    The assumption of break even is created by the formula :-

    Sales less Cost of Sales is equal to ZERO %.
  • May 4, 2009, 12:44 AM
    morgaine300
    Quote:
    Originally Posted by ROLCAM View Post
    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.

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