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Words: | Submitted: Mon Dec 22 2003
... even. From using the company information, by analysing and producing a break-even chart I have found out that The firm is incorrect in its assumption that it needs to sell 300 cars per year to break even. The actual amount that has to be sold to break even is 321 cars each month. I have illustrated this in my break-even chart that clearly shows the number of cars to break even is 321. Break even in appendix. There are several benefits of the break-even analysis, and I have used it to show how the firm is performing. Visual impact, the break-even chart provides a visual means of analysing businesses financial position at different level of output. Business decisions makers can see at a glance at the amounts of profit or loss that will make at different sales levels. Risk assessment, the margin of safety shown on the break even chart provides business with an assessment ...
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