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    stheronell's Avatar
    stheronell Posts: 5, Reputation: 1
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    #1

    May 2, 2009, 02:41 PM
    Breakeven analysis
    Discuss the critical assumptions underline the break even analysis
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #3

    May 4, 2009, 12:44 AM
    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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