26 Pages Posted: 15 Feb 2011 Last revised: 23 Mar 2011
Date Written: February 13, 2011
This is a teaching material for a module of Financial analysis at Universidad Tecnológica de Bolivar. The educational material was developed with Professor Ricardo Davila from Universidad Javeriana, Bogota, Colombia. The written material has been modified several times using the feedback from students and other users. This material is an unpublished one.
This chapter is a detailed presentation of the traditional break-even point model and the operational leverage for a firm. However, we make some changes to the traditional way of looking at the break-even analysis, including how to analyze the discontinuing of products in case they are not profitable. We give detailed examples for each case.
Notes: Downloadable document is in Spanish.
Keywords: Accounting, financial management, break-even point analysis,operating leverage
JEL Classification: M41
Suggested Citation: Suggested Citation
Velez-Pareja, Ignacio and Davila, Miguel Ricardo, Break-Even Analysis and Operating Leverage (Análisis De Punto De Equilibrio Y Apalancamiento Operativo - in Spanish) (February 13, 2011). Available at SSRN: https://ssrn.com/abstract=1761079 or http://dx.doi.org/10.2139/ssrn.1761079