Importance of Break-Even Analysis for the Micro, Small and Medium Enterprises

Sintha, Lis (2020) Importance of Break-Even Analysis for the Micro, Small and Medium Enterprises. International Journal of Research- Granthaalayah, 8 (6). ISSN 2350 0530

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Abstract

The current behaviour of Small and Medium Enterprises has to face many problems and the survey are predicted, 47 per cent of Small and Medium Enterprises stop trying. One of the causes is that there are still many small and medium businesses, from the beginning of opening their business up to now, they have never carried out an analysis of profit and loss calculations and a comprehensive calculation of how many product units should be made so that the business returns on capital by looking at production factors or resources used. “Break-even analysis is a financial tool that helps decide at what stage a company, or new service or product, will be profitable, which is a financial calculation to decide the number of products or services that a company must sell to cover its costs (especially fixed costs). This research paper is the application of the theoretical concepts of CVP Analysis, Break-Even Point a powerful tool for planning and decision making”. highlight costs, quantities sold and prices, which are the company's financial information.

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