Welcome to the Break-Even Analysis Simulation! The Break-Even Analysis Simulation is an new, revolutionary type of e-Learning course. Unlike other e-learning courses, you will learn-by-doing in a realistic, yet risk-free environment.

After completing this Simulation, you will be able to:
  1. Derive and explain the Break-Even formula
  2. Classify various costs as either fixed or variable
  3. Calculate the Break-Even volume and date for a given venture
  4. Explain the impact of various manufacturing and marketing decisions on the Break-Even volume and date
Within the Simulation, you will play the role of a business analyst at Tanro Corporation, a leading manufacturer of gas-powered lawn mowers. Tanro is considering entering the market for electric lawn mowers because of proposed legislation that would put tight restrictions on lawn mower emissions. Your goal is to work with the CFO, the VP of Manufacturing, and the VP of Marketing to see if it is possible for this venture to break even within the Board of Directors' goal of two years.

Steps to complete:
  1. Read through the references to become more familiar with the Break-Even concept
  2. Review the instructions to learn how to complete the Simulation
  3. Complete the Break-Even Simulation