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Breakeven Analysis Definition and Explanation PDF Download

Learn Breakeven Analysis definition in marketing with explanation to study “What is Breakeven Analysis”. Study breakeven analysis explanation with marketing terms to review marketing course for online MBA programs.

Breakeven Analysis Definition:

  • A means by which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong



Breakeven Analysis Explanation:

Break even analysis is usually used by the top level management of the organization. It can be calculated with the help of total variable and fixed costs in comparison with sales profits for undermining the sales volume. The breakeven point indicates when companies neither get profit nor loss from the business.

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