The break-even analysis, also known as marginal performance calculation, is an important tool in corporate governance and financial management. It enables companies to identify the point at which revenues exactly match costs so that neither profit nor loss is made.

To carry out a break-even analysis, various factors must be taken into account, including fixed costs, variable costs and the selling price of a product or service. By analyzing this data, the company can determine how many units it needs to sell to cover its costs.

There are different methods for calculating the break-even point, including the formula method, the graph method and the contribution margin method. Each method has its own advantages and disadvantages, but the goal remains the same: to identify the point at which costs are covered and the company is neither making a profit nor a loss.

Breakeven analysis has many applications in different business areas. It can be used to assess the profitability of new projects or products, plan price changes, optimize cost structures and make investment decisions.

Overall, break-even analysis is a useful tool for companies to evaluate their financial performance and make informed decisions. It enables managers to understand the impact of different scenarios on their company’s profitability and act accordingly.