MSA 602 Break-Even Analysis
The concepts in this course are not only valuable for corporations, other business forms, non-profits organizations, and personal finance, but also entrepreneurs. Conducting a break-even analysis is a great way for entrepreneurs to evaluate the feasibility of selling their product or service.
A break-even analysis is used to determine the break-even quantity of a firm’s output by examining the relationships among the firm’s cost structure, volume of output, and profit. Break-even quantity may be calculated in units or sales dollars. The break-even point indicates the point of sales or units at which earnings before interest and taxes (EBIT) is equal to zero.
In this paper you will propose selling 2 new products or services as an entrepreneur and conduct a breakeven analysis for each idea.
Tip: If you are stuck on ideas, try watching some episodes of Shark Tank.
Include in your paper the following sections:
Cover page with a descriptive paper title, your name, your program, course title, instructor name, and date
Brief introduction to the paper
The break-even analysis for 2 new products/services in either units or sales dollars (pick either units or sales dollars for both for better comparison)
Discussion of analysis results: what do the results of your calculations mean, what should you do, and what might the proposals more appealing financially?
Brief conclusion
- Reference page
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