Breakeven Analysis
When is Breakeven Analysis Covered?
Breakeven Analysis is introduced in ENGR112 during
Class 19.2*
*Explaination
of Class numbering System
Objectives
| Class 19.2: |
Breakeven Analysis |
|
Be able to draw a breakeven graph,
ignoring the time value of money |
|
Calculate the effective cost of
manufacturing a part |
Class Agenda
| Class 19.2: |
Breakeven Analysis |
|
RAT - quiz |
|
Lecture material on
generating breakeven graphs |
|
5 min team exercise |
| |
Lecture material on accounting
for other factors |
|
RAT - quiz |
| |
Team exercise and examples |
|
Team In-Class Assignment |
| |
HW assignment |
Why is Breakeven Analysis Important?
Breakeven analysis is a statistical method of understanding
the expenditures and income balances that are useful in running
an industry or business. It is important to develop a graph to represent
profit vs. loss and show the number of units which must be sold
to recover the initial investment in a business.
|
