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 |
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Be able to draw a breakeven graph, ignoring the time value of money |
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Calculate the effective cost of manufacturing a part |
Class Agenda
| Class 19.2: |
Breakeven Analysis |
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RAT - quiz |
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Lecture material on generating breakeven graphs |
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5 min team exercise |
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Lecture material on accounting for other factors |
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RAT - quiz |
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Team exercise and examples |
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Team In-Class Assignment |
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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.
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