![]() ![]() Until the 1960s some authors still referred to this representation as: Knoeppel graph. Knoeppel and Seybold ( 1918) reflected in his book, Graphic Production Control, the classification between fixed and variable costs of the company. ![]() Henry Hess ( 1903), who graphically raised the relationship between utility, cost, volume and price, capturing it through the "crossing point graph" (cross over chart). The historical background of the break-even point as a tool that is part of the financial analysis for decision-making in organizations can be found in an accumulation of works carried out by various authors, highlighting the following among others: The uncertainty related to internal supply and external demand forces entrepreneurs to ask themselves: What happens if the project is not executed at the assumed capacity level? Will the project be in a position to at least recover its costs? Among others, these risk-induced questions motivate the calculation of the break-even point ( Satya & Deshpande, 1982). The calculations necessary for profitability are made based on the assumption of the expected normal level of operations of a project, which is why the calculation considers the normal use of installed capacity, but the entrepreneurs know that normal capacity is rarely used, or total in the actual operations of the Project. The break-even point is one of the most used tools when carrying out financial analysis in order to make the most appropriate business decisions, the calculation and result of this tool is used to determine the economic amount in sales and the volume of units of products or necessary services to cover operating expenses and variable costs, showing its result that there is no profit or loss in the business activity, thus achieving the operating break-even point. ![]()
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