220k views
3 votes
A break-even analysis includes operating expenses and total monthly debt payments,

plus

school costs

gross profit margin.

Onet profit margin

zero term margin.

1 Answer

4 votes

Answer: Gross profit margin.

Step-by-step 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.

User Nicola Desogus
by
3.2k points