A break-even analysis.

Calculate your break-even analysis. Increase your cost by 10% and re-calculate your break-even analysis. Now, increase your cost another 10% and re-calculate your break-even analysis.

Next, start with your original break-even analysis. Decrease your expenses by 10% and recalculate your break-even analysis. Now, decrease your expenses another 10% and re-calculate your break-even analysis.

Submit all 5 calculations in a Word document with the following:

When increasing your costs, how much sooner do you reach your break-even? How would the increases in cost be received by your customer?
When decreasing your expenses, how much sooner do you reach your break-even? How realistic would the decreases in expenses be for your venture?
What is your final break-even analysis, the one you will use for your venture? Explain.

Sample Solution