BreakEven
Analysis 
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.  Break Even Analysis is one
of those things that many Marketing students are afraid of trying to understand
because it involves a little bit of math  however the math is simple 
so try to grasp the concept cause it is important that you know how to
do this. It is done for little businesses and big businesses  the main
reason is to have some idea of how much to sell, before you start making
a profit  and if that number is too difficult to do  then maybe you can
change it by increasing your price, or cutting costs  that is the guts
of the analysis.
Break Even Analysis is explained most mainstream marketing textbooks  there are also many good websites that explain it too  and they give some simple examples  as seen below. Breakeven Analysis may take a little bit of time to understand but you should make an effort to grasp this concept  people really do this in business and if you can tell a potential employer that you are able to do this, it will increase your competitiveness. Breakeven Analysis is used by business to help them arrive at a price that will allow them to make some profit, and, know when that will happen in the future. WTGR 
"One important disadvantage of the breakeven analysis is that it requires estimating a single perunit variable cost, and a single perunit price or revenue, for the entire business. That is a hard concept to estimate in a normal business that has a collection of products or services to sell." 
Scenario So, assume we have a product we want to sell for $10.00 and we want to sell 1,000 of them. For this example our total fixed costs are going to be $7,700 and our total variable costs are $4.50/unit. Our formula would look like this:
P=1,000 ($10.00  $4.50)  $7,700 = $5,500  $7,700 = $2,200
Instead of making money we have just lost $2,200. At break even the $2,200 number should be $0. We can't make money at 1000 units so how many must we really sell to break even? We know our fixed costs (F) are $7700, and the price (p) is still $10.00 and our variable costs (V) are $4.50/unit we do this: (p) price minus (V) variable costs divided into (F) fixed costs or $10.00  $4.50 = $5.50 divided into $7700 = 1400 units. If we maintain our price and expenses we need to sell 1400 units of our product to break even. If we raise our price or reduce expenses we can sell less.  this explanation comes from Eagle Marketing, Bozeman, Montana 
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