Activity Overview
In this activity, students perform breakeven analysis using the cost and revenue of an enterprise. They will determine the relationship between fixed and variable costs, profits, pricing policy, and the volume of output.
About the Lesson
Breakeven analysis is concerned with the relationship between the cost and revenue of an enterprise. Implicit in such an analysis is an examination of the relationship between fixed and variable costs, profits, and pricing policy and the volume of output (quantity produced).