Evaluating the balance between risks and profitability within a defined product mix can be done by

utilizing CVP analysis (Kee, 2007).

Break-even analysis and contribution margin analysis provide answers to questions related to sales
volume, break-even and profit. If the company knows sales volume required to break even, the
necessary volume to reach the desired profit also exposes. Not only the change in selling prices and
cost affect the profit but also the mix of products. The analysis brings the approach to determine the
potential target income and profit. (Cafferky & al. 2014, 11.)

A company's break-even point is the amount of sales or revenues that it must generate in order to
equal its expenses (Wikipedia, 2014).

s. A break-even analysis can, however, provide us with important preliminary information about the
status of the business (Moyer, McGuigan, Kretlow, 2005).

Implementing small changes in one or more of these areas could enable the firm to reset business’s
break-even point, and move the company in the direction of greater profitability
(Linwoodinvestment, 2014)

Once achieved break-even point, the marginal turnover per unit of product sold is the profit
(Potkany, et al., 2015)

Rajasekaran and Lalitha (2011, 747) Identified the following objectives of CVP analysis in frims and
business: Determination of selling price, profit planning, exercising control, forcasting profit,
deciding alternative cause of action, planning for cash requirement ,making new product decisions
and setting up flexible budget. All these objectives are in the domain of the functions of managers in
the day to day running of the business and the overall effeciency of its profitability.

Arora (2009, 202), explains breakeven analysis as commonly used technique for examining the
relationship among the CVP elements. Here, it is analysed by looking at its narrow and broader view.
In its narrow application, break-even analysis is use in determining the level of production, where
the business makes neither profit nor loss.

According to Noor (in Razak et al., 2015: 2) break even point analysis is the main return point or level
of production where the company does not experience losses but also does not make a profit.
According to Martono and Harjito (in Razak et al, 2015:2) break even point analysis or break-even
analysis is an analytical technique to study the relationship between costs, profits, and sales volume.
Based on this theory, it can be concluded that the break even point analysis is a tool used to
determine the break even point of the business where the business does not experience losses and
does not get profits. Break even point analysis can be seen the minimum revenue that must be
achieved by the business in order to obtain the targeted profit for the following year. It identifies the
total amount of sales the business needs before profit can be earned. When analyzed
closely, the break-even analysis also helps the business to identify excessive fixed costs.
Since the break-even point is directly related to the fixed costs, reducing and controlling
these costs aids the business in achieving a lower break-even point for quicker profitability.

The term is usually used to describe a start up firm that is looking to reach a point of profitability
after an initial period of loses that are supported by investors. Breakeven point analysis is a very
important tool, especially if we are preparing to figure out the volume of sales needed in order to
cover total costs, and then planning to make profits. If a product cannot cover its own costs, it
inherently reduces the profitability of the firm. Anything to the contrary may well be crucial in
deciding their continued survival. Break Even analysis can clarify a large number of business
decisions, often called to as cost-volume-profit analysis. Focusing on the behavior of costs and
profit of a business, helps to determine which products are profitable and which are not. With the
help of CVP analysis, the manufacturing of products which constantly create loss can be stopped.
CVP analysis determines the optimal level of production to maximize profitability of a business. It is
vital to understand how costs behave in order to conduct budgets and profit planning. Information
acquired by CVP analysis can be used for evaluating the business profitability.
Profitability is the goal of every business. But before that can turn a profit, they first have to break
even. Monitoring the operations and profitability of a manufacturing company, break-even point is
an important indicator, signalling whether the business is going to a right direction. If the sales
decline below the break-even point, it indicates that the company can no longer cover its fixed costs
without additional funding from external financiers. Especially in small companies or in companies
which are in their start-up phase, the analysis of break-even point is crucial. Without the analysis it is
impossible for the manufacturing business to know how many units must be sold to cover all costs,
or to generate profit. If the break-even point is reached and exceeded, the excess money can be
used for improving the working environment . The profitability of a manufacturing company is
determined by the ability of the company to manufacture products at sufficiently low costs and to
sell them with adequate break even analysis. Improving profitability is one of the constant targets of
developing a business. The analysis of break-even point and implementation of cvp process can
increase the profitability. One of the most fundamental of concepts in performance
measurement in general and profitability in particular is determining at what level of the
capacity does the operation break even - that is, revenues and expenses are level. This is
simply because, the higher the level of capacity an operation breaks even, the less the
potential for future profits there is.
The pandemic crisis threatens the profitability of the business. The breakeven point and the
expected profit is very important analyses done by business who wants to know how much they
have to produce to cover cost and make profits thereafter.
 The researchers aimed to figure out the relationship of using breakeven point analysis in
measuring the profitability of manufacturing business in Pasig City on pandemic crisis on a 6 month
span. One of the most important concepts in managing financial performance
during pandemic is the breakeven point. The breakeven analysis helps
determine at what stage the business starts making profit. It helps to
determine the number of units that the manufacturing business needs to
produce to become profitable. It is point zero at which you are neither
making a profit nor a loss. Analysing the manufacturing business’ break-even point will give
an idea of what revenue is needed for the business to be profitable. This will enable the
business to continue even when such circumstances as the pandemic
occur. This process will help the business perceive risk and opportunities
as they plan for the future after the pandemic outbreak.

 tool provides the easy understand, detailed, clear and simple information, profit of various products
as well as the decision whether to continue business or not, change of variable cost and fixed cost,
control and measure of cost, a key role in the analysis between the amount, profit and costs, and
especially the forecast, up the long-term plans, the stability and development in the future

Anything to the contrary may well be crucial in deciding their continued survival.

The main goal of the thesis was to examine the costs, pricing and profitability of the case company
under different scenarios.

Short-term loss is not always a cause for concern but long-term profitability is necessary for the
business to keep operating. C

Information acquired by CVP analysis can be used for evaluating the business profitability

Applying the suggested changes would result in making better choices in production planning,
therefore increasing the profitability of the company
Break-even analysis and target income calculation aim at determining the sales volume and
forecasting revenue needed to generate.

If your company is profitable you may want to know how much breathing room you have should
revenues take a dip. If your company is losing money, knowing the break-even point will tell you
how far you are from beginning to turn a profit.

Break Even analysis can clarify a large number of business decisions, often called to as cost-
volume-profit analysis.

he break-even analysis arranges the company the ability to measure each product’s
breakeven point, but it cannot distinguish between the two products.

CVP Analysis may be used to regulate the profitability and risk offsets resulting from
alternative product design and production options.

 CVP analysis uses accounting profitability as the primary decision criteria for assessing
resource allocation decisions.

The main goal of the thesis was to examine the costs, pricing and profitability of the case company
under different scenarios.

One of the most fundamental of concepts in performance measurement in general and

profitability in particular is determining at what level of the capacity does the operation break
even - that is, revenues and expenses are level. This is simply because, the higher the level of
capacity an operation breaks even, the less the potential for future profits there is.

In this thesis, the period for the analysis is selected based on the preferences of managers, to meet
the requirements that they have. The longer the period is, the more fluctuations there are in costs
and sales. (Cafferky, Wentworth, 2010). Focusing on the behavior of costs and profit of a company
helps to determine which products are profitable and which are not. With the help of CVP analysis,
the manufacturing of products which constantly create loss can be stopped.

With its strength, this tool provides the easy understand, detailed, clear and simple information,
profit of various products as well as the decision whether to continue business or not, change of
variable cost and fixed cost, control and measure of cost, a key role in the analysis between the
amount, profit and costs, and especially the forecast, up the long-term plans, the stability and
development in the future

This research study shed the light on the reality of the use of the breakeven point in the planning,
controlling and decision-making in industrial companies in Jordan .
there is a statistical significant relationship between the use of the break-even point and successful
planning, control and decision-making in the Jordanian industrial companies.The study has
recommended that, companies should use breakeven point as a main tool of decision-making and
planning oversight because of its impact, efficiency and accuracy in the rationalization and control
decisions

Businesses need to prepare for uncertainties that the environment presents

and make plans on how to overcome those challenges while still remaining
relevant
Break even is that point in business where a business turns from making a loss to making a profit. .