Break-Even Analysis

Break-even analysis is a tool we use at BAKER SPINDLER HOLTZ to calculate the sales volume at which your fixed costs are covered and you are beginning to generate a profit. Another way to look at it is that the break-even point is the point at which your product stops costing you money to produce and sell, and starts to generate a profit for your company. You can also use break-even analysis to solve managerial problems such as setting price levels, targeting optimal variable/fixed cost combinations, and determining the financial attractiveness of different strategic options for your company.