Break even analysis is a tool for analyzing the relationship between sales volume and profitability. There are three break even measures:
- Accounting Break even - The volume of sales at which [[Income statement|Net Income]]=0
- Cash-Break even: The volume of sales at which the operating [[Cash flows]] become 0
- Financial Break even: The volume of sales at which the [[Future and present values#Net present value|NPV]] = 0
For example refer to ITF_21.2.xlsx