Using breakeven analysis.

19 minutes

Ever wondered what additional income you need to cover the cost of a new employee, or upgrading equipment? Breakeven analysis can help take away the guesswork.

This video covers the concept of breakeven analysis, looking at the relationship between price, volume, and cost, and using the understanding of that relationship to answer questions such as “If my costs are increasing, how much do I need to increase my price by to remain as profitable as I am now?” or “If I increase my prices how much market share can I afford to lose?”

We'll help you learn how to:

  •  identify the difference between fixed and variable costs.
  •  calculate the breakeven point of a business.
  •  measure what impact changes to your price, volume, or costs can have.

This video may be helpful for:

  • business owners or managers facing increasing costs.
  • business owners or managers growing sales.
  • business owners or managers wanting to improve their profitability.

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Davidson Institute

Whether you’re a budding business, dedicated community group or curious individual, our financial education resources are designed to help you feel more money confident. Powered by Westpac, the Davidson Institute is here to help you work towards the financial future you want.

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