The textbook use for this analysis is to determine when mechanisation becomes worthwhile. In practice it works for any quantifiable decision and should be used to test most financial proposals.
This template provides for four alternative approaches. Additional alternatives can be added by adding a worksheet and copying the contents of an empty existing worksheet to the new one, and then expanding the scope of the summary sheet.
- An “Approach” worksheet for each scenario.
- A summary sheet to bring the scenarios together.
- A chart to show the cost for each scenario, and where “breakeven” occurs.
How to use the Breakeven Analysis Template
For each alternative, the user will need to compile a full list of the associated cost components, both fixed and variable.
Additional cost components can be added, simply by inserting a row.
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|File Type||MS Excel|
|Business Category||Business Projection Tools, Innovation Projects and Processes|
|Key Aspects||Analysis, Breakeven, Excel, Scenario Exploration|
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