Explain Break Even Analysis.

Break Even Analysis: This Analysis implies that at several points in the operations, total revenue equivalent total cost. This analysis is concerned with finding the point at which costs and revenues agree exactly - therefore the term 'Break even point'. The given figure portrays the Break Even Chart.

Breakeven point is the volume of output at that neither a loss is made nor a profit is incurred. This analysis can be carried out graphically or algebraically as given in the above diagram.