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Engineering Economy, 5/e
Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso
Breakeven Analysis

Learning Objectives

Purpose: For one or more alternatives, determine the level of activity necessary or the value of a parameter to break even.

This chapter will help you:


1. Breakeven point

Determine the breakeven value for a single project.

2. Two alternative breakeven

Calculate the breakeven value between two alternatives and use it to select one alternative.

3. Spreadsheets

Develop a spreadsheet that uses the Excel tool SOLVER to perform breakeven analysis.








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