Accounting › Section Q · Cost-volume-profit analysis › Topic Q.3
Break-even sensitivity for one and many products
Prices, costs and customer tastes never stand still. Sensitivity analysis reruns the break-even model under "what if" changes, one at a time or several at once, and extends it to businesses that sell a mix of products.
In this topic
- Asking "what if?"
- Changing one input
- Worked example: three single changes
- Changing several inputs at once
- Worked example: a moulding machine
- Many products: the sales mix
- Worked example: Brackenfield Candle Co.
- Break-even in dollars for a mix
- When the mix shifts
- Common mistakes to avoid
- Key takeaways
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