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Breakeven point is a very important calculation for most companies

Breakeven point is a very important calculation for most companies. It is instrumental in determining such things as how much to produce, how much incentive to supply to sales personnel to push products, and whether to adjust budget figures from year to year. Virginia Commonwealth University even has a breakeven point to determine whether a class is feasible to run.

Based on your understanding of breakeven and profit analysis, discuss what your company (or a previous company’s) breakeven might be. You do not need to discuss how many particular units (unless you know that figure), but rather what TYPES of units you believe would be calculated as breakeven, what costs you believe would be used to calculate breakeven, etc.

In addition discuss the advantages and disadvantages of breakeven for the company you choose. Breakeven works for all companies, but is better utilized in some companies over others.

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