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Explain Break Even Analysis.
Break Even Analysis: This Analysis implies that at several points in the operations, total revenue equivalent total cost. This analysis is concerned with finding the point at which costs and revenues agree exactly - therefore the term 'Break even point'. The given figure portrays the Break Even Chart.
Breakeven point is the volume of output at that neither a loss is made nor a profit is incurred. This analysis can be carried out graphically or algebraically as given in the above diagram.
Consider the WBS shown below: 1.00.00 1.1.0 1.1.1 1.1.2 1.2.0 1.2.1 1.2.2 If the total program costs $100,000 and 1.2.1 and 1.2.2 are each $20 K, then the cost of 1.1.0 is:
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