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MA_775_DIABLO [31]
2 years ago
9

A break-even analysis includes operating expenses and total monthly debt payments,

Business
1 answer:
soldi70 [24.7K]2 years ago
5 0

Answer:

Gross profit margin.

Explanation:

Break-Even Analysis enables a business to know how much cash it has under given situations by helping it know how much sales it needs in order to have a certain amount of cash.

It is calculated by the formula;

(Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-Even Sales

Operating Expenses in this equation is net of Depreciation as depreciation is a non-cash expense.

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