Break-Even Method of Investment Analysis

Norman L Dalsted and P.H. Gutierrez ( March, 2012 )

Summary

Break-even analysis is a useful tool to study the relationship between fixed costs, variable costs and returns. A break-even point defines when an investment will generate a positive return and can be determined graphically or with simple mathematics. This fact sheet attempts to explain how break-even analysis works with a definition of terms and useful examples.

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Organization

Colorado State University Extension

Publisher

Colorado State University

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724

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Written Material