The break-even point is the volume of activity where the organization’s revenues and expenses are equal. At this amount of sales, the organization has no profit or loss; it breaks even. Managers of organizations use break-even analysis to better understand the relationships between the organization’s costs, volume, and revenue. In this workshop, led by Professor Inshik Seol, we will discuss the following:

• How to compute a break-even point using the contribution-margin approach and the equation approach.
• How to compute the contribution margin ratio and use it to find the break-even point in sales dollars.
• How to prepare a cost-volume-profit graph and explain how it is used.
• How to apply break-even analysis to determine the effect on profit of changes in fixed expenses, variable expenses, sales prices, and sales volume.
• How to compute the break-even point for a multiproduct company and explain the effects of shifts in the sales mix on contribution margin and the break-even point.
• How to prepare and interpret a contribution income statement.
• How to explain the role of cost structure and operating leverage.
• The effect of income taxes on break-even analysis.

When: Friday, February 11, 1:00 – 5:00 p.m.
Where: JC101

Space is limited, so sign up today! To register for this workshop, send an email to gsomstudentservices@clarku.edu with your name, email address, program and year (ex. 2nd year MSF). And be sure to pay attention for future announcements on more GSOM Spring 2011 skills workshops, including SPSS, Excel, Effective Presentations and more!