Breakeven Sensitivity Analysis
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This video explains break-even sensitivity analysis. This is useful because managers must adapt to changes in the real business world and consider what-if scenarios as they manage their business.
Most companies selling products and services sell more than one product or service. So, different prices, costs, and contribution margins apply to the products. These differences must be factored in to calculate a break-even point for a company selling multiple products, so a weighted average contribution margin must be calculated.
Source: Dave Allredge, https://www.youtube.com/watch?v=BVXjE6GlSjA
This work is licensed under a Creative Commons Attribution 3.0 License.
Last modified: Thursday, 14 July 2022, 1:08 PM