Benefits of break even analysis
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Benefits of break even analysis
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The main benefits of break even analysis is that it explains the relationship between cost, production volume and returns. It can be extended to show how changes in fixed cost-variable cost relationships, in commodity prices, or in revenues, will affect profit levels and break-even points.
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The main benefits of break even analysis is that it explains the relationship between cost, production volume and returns. It can be extended to show how changes in fixed cost-variable cost relationships, in commodity prices, or in revenues, will affect profit levels and break-even points.
(Visit the source of this topic for more details and discuss on it here.)
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