Assignment task:
The concepts in this course are not only valuable for corporations, other business forms, non-profits organizations, and personal finance, but also entrepreneurs. Conducting a break-even analysis is a great way for entrepreneurs to evaluate the feasibility of selling their product or service.
A break-even analysis is used to determine the break-even quantity of a firm's output by examining the relationships among the firm's cost structure, volume of output, and profit. Break-even quantity may be calculated in units or sales dollars. The break-even point indicates the point of sales or units at which earnings before interest and taxes (EBIT) is equal to zero.
Propose selling (Smart Home Energy Management System and Personalized Online Fitness Coaching) as an entrepreneur and conduct a breakeven analysis for each idea.
Include in your paper the following sections:
- Brief introduction to the paper
- The break-even analysis for 2 new products/services in either units or sales dollars (pick either units or sales dollars for both for better comparison)
- Discussion of analysis results: what do the results of your calculations mean, what should you do, and what might the proposals more appealing financially?
- Brief conclusion
- Reference page