Break Even

Aims, Objectives & Introduction


This unit aims to provide you with the information necessary to calculate the break even point.


By the time you have completed this unit you should be able to:


This study unit looks at the concept and calculation of the break even point. This is a useful concept as it allows a business to decide whether a product or service is going to be viable or not. We will look at the calculation of the break even point and its place in business decision making.

This topic is part of the area of costing known as 'Marginal Costing' and SU10 will look at this further.

These two study units give you the input needed for Outcome 4 in Preparing Financial Forecasts.