Week 7 Discussion- Account for Managment Decision Making

Account for Management Decision making

Week 7 Learning Resources

Break- Even Decision Making

It is essential that companies understand when they will start to be profitable. Finding the point at which revenue is equal to costs is called the break-even point. For example, a company that sells motorcycles needs to know how many must be sold each month to cover all costs. It is only after that number is sold that the company will start to make a profit.

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  Why it mattersLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/3-why-it-matters

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  3.1 explain contribution margin and calculate contribution margin per unit, contribution margin ratio, and total contribution marginLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/3-1-explain-contribution-margin-and-calculate-contribution-margin-per-unit-contribution-margin-ratio-and-total-contribution-margin

· Franklin, M., Graybeal, P., & Cooper, D. (2019).  3.2 calculate a break-even point in units and dollarsLinks to an external site. . In  Principles of accounting, volume 2: Managerial accounting . OpenStax. https://openstax.org/books/principles-managerial-accounting/pages/3-2-calculate-a-break-even-point-in-units-and-dollars

· Gallo, A. (2014, July 2).  A quick guide to breakeven analysis .  Harvard Business Review Digital Articles , 2–5. http://hbr.org

· Likierman, A. (2020, January–February).  The elements of good judgment .  Harvard Business Review ,  98 (1), 102–111.

· Walden University, LLC. (2021).  Break-even accounting [Video]. Walden University Canvas. https://waldenu.instructure.com

· Walden University, LLC. (2024).  Break-even point    Download Break-even point [PDF]. Walden University Canvas. https://waldenu.instructure.com

· Walden University, LLC. (2024).  How to calculate break-even point    Download How to calculate break-even point [PDF]. Walden University Canvas. https://waldenu.instructure.com