Contents
Unit 3: Personal and Business Finance
Module objectives
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Objectives
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Cash flow forecasts
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Cash flow forecasts
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Preparing cash flow forecasts
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Using cash flow forecasting
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Benefits and limitations of cash flow forecasting.
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Case Study: External impacts on cash flow
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Break-even
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Break-even analysis
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Break-even forecast: Costs
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Revenue
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Calculating the break-even point
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Calculating a break-even point – using the contribution method
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Calculating the break-even point – using a break-even chart
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Identifying the area of profit, loss and the margin of safety
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Using a break-even chart
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Case study: Break-even
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Module 5: Cash flow forecasting and break even

Calculating the break-even point

 

The break-even point can be calculated using a formula or by designing a break-even chart. We will have a look at both methods.

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