Limitations of using break even analysis
Using contribution to calculate break-even point. 4. Margin of safety. 5. Interpretation of break-even charts. 6. Limitations of break-even analysis. Getting started. 9 Nov 2014 Simply put, break-even point can be determined by calculating the point at which revenue received equals the total costs associated with the 10 Aug 2018 Breakeven Analysis- A decision-making aid that enables a manager to cost with output imposes another limitation on break-even analysis.