2.3 Break Even Analysis

A financial tool which helps you to determine at what stage a company or product, will be profitable.

• For example
  The graphs showing the toy making business income and expenses is given below: A toy
  making business may below:

a) Determine the income if 30 toys are sold
b) How many toys must be made and sold to break even?

Watch the interactive video below for an easy explanation of break even analysis and complete the activities that appear as you click on the purple icon.