Example: Breakeven Analysis

What is the minimum number of units we must sell to cover all our expenses?

Incomes [tex]$=$[/tex] Expenses
[tex]$
25000 = 25000
$[/tex]

No profit, no loss



Answer :

Alright, let's conduct a breakeven analysis to determine the minimum number of units you need to sell to cover all your expenses.

### Step-by-Step Solution:

1. Identify Incomes and Expenses:
- Incomes: [tex]$25,000 - Expenses: $[/tex]25,000

2. Determine the Breakeven Point:
- The breakeven point is where Incomes equal Expenses. In this case, both incomes and expenses are exactly [tex]$25,000. 3. Analyze the Result: - At this point, \( \text{Incomes} = \text{Expenses} \), which means that you are at the breakeven point. There is no profit and no loss. 4. Conclusion: - Since your incomes of $[/tex]25,000 and expenses of [tex]$25,000 balance each other out, you are not making any profit, but you are also not incurring any loss. Hence, you are at the breakeven point. In summary, with incomes and expenses both being $[/tex]25,000, you cover all your expenses without making any profit or incurring any loss.