22.7 - Applications of Break-even Analysis in IT Projects
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
Define Break-even Point.
💡 Hint: Remember that it's where profit is zero.
What are fixed costs?
💡 Hint: Think of rent and salaries.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the Break-even Point?
💡 Hint: Think about the definition.
True or False: Fixed costs change depending on the level of production.
💡 Hint: Consider the definition of fixed costs.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A startup reports fixed costs of $30,000 and variable costs of $10 per unit for their new product priced at $25. How many units must they sell to break even? Also, evaluate how sharing resources might improve this.
💡 Hint: Apply the break-even formula.
A cloud service company expects to incur costs of $50,000 for infrastructure and variable costs of $20 per user. The service will be offered at a price of $50. Analyze how they can optimize pricing strategies based on the break-even point to encourage user subscriptions.
💡 Hint: Remember to consider how costs affect user pricing.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.