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The break- even analysis identifies the break-even point, which is the level of sales and expenses, including loan principal payments, at which a business has no profit and no loss.
The production cost is the cost to produce the product. The break even analysis is the amount you would have to sell the product for to simple break even on your cost-not to make a profit or lose money.
A break even analysis of any business would identify the market, identify the source of the raw materials, account for expenses and determine how much to buy and how much to sell in order to break even.
Use the on-line calculator below to do your break-even analysis for raising cattle.
It is cheap to carry out and it can show the profits/losses at varying levels of output. It also provides a simple picture of a business - a new business will often have to present a break-even analysis to its bank in order to get a loan.