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Master Fundamentals of Agricultural Extension – Notes, Case Studies & Practical Insights – with Rahul

Break even analysis

  • Breakeven analysis is a simple calculation, yet it’s valuable to managers because it points out the relationship between revenues, costs, and profits.
  • To compute breakeven point (BE), a manager needs to know the unit price of the product being sold (P), the variable cost per unit (VC), and total fixed costs (TFC).
  • An organization or program breaks even when its total revenue is just enough to equal its total costs.
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