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Making waves underground: India's first undersea rail tunnel takes shape · 10 hours ago IRDAI launches comic book series to simplify life insurance for consumers · 10 hours ago Fans 1, Productivity 0: How FIFA World Cup 2026 could trigger $17bn loss worldwide · 11 hours ago India's power sector set for strong FY27 growth on rising demand, capacity additions: Report · 12 hours ago ITR filing: Sold shares, property or crypto this year? Here's what you must know before filing your income tax return · 15 hours ago Punjab National Bank Q1FY27 net profit up 213% to Rs 5253 crore · 15 hours ago IDBI Bank Q1FY27 net profit rises 3.3% to Rs 2007 crore · 15 hours ago Nobody wants to wait on hold anymore. But can AI replace customer care? · 16 hours ago Pakistan to revise fuel prices daily; current account slips into $139 million FY26 deficit · 15 hours ago New money? India's currency might soon get a plastic makeover · 18 hours ago Textile sector to sew loose ends as FTAs kick in · 1 day ago NITI index: Gujarat, Maharashtra lead in wooing investors · 1 day ago Making waves underground: India's first undersea rail tunnel takes shape · 10 hours ago IRDAI launches comic book series to simplify life insurance for consumers · 10 hours ago Fans 1, Productivity 0: How FIFA World Cup 2026 could trigger $17bn loss worldwide · 11 hours ago India's power sector set for strong FY27 growth on rising demand, capacity additions: Report · 12 hours ago ITR filing: Sold shares, property or crypto this year? Here's what you must know before filing your income tax return · 15 hours ago Punjab National Bank Q1FY27 net profit up 213% to Rs 5253 crore · 15 hours ago IDBI Bank Q1FY27 net profit rises 3.3% to Rs 2007 crore · 15 hours ago Nobody wants to wait on hold anymore. But can AI replace customer care? · 16 hours ago Pakistan to revise fuel prices daily; current account slips into $139 million FY26 deficit · 15 hours ago New money? India's currency might soon get a plastic makeover · 18 hours ago Textile sector to sew loose ends as FTAs kick in · 1 day ago NITI index: Gujarat, Maharashtra lead in wooing investors · 1 day ago
Sunday, 19 Jul 2026 · IST
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General

What are the various uses for break-even analysis?

Such analysis allows the firm to determine at what level of operations it will break even (earn zero profit) and to explore the relationship between volume, costs, and profits. It helps the management that at current costs of products how many numbers of units must be sold to recover the cost of producing the product.

For Example: If you spend, $200 on producing a product and selling price is $20 then you must sale 10 units to recover the cost of product.

It also helps the management to determine how much of units to be sold to get desired profit on product. For example: if in the above example you want to earn $20 profit then add it to it's cost of $200 and it will become $220 now you need to earn profit of this $20 you need to sale 11 items of product.

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