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

1. Reference page