Break-Even Analysis and the Break-Even Point

When considering the production or sale of a new product or service, businesses often will use break-even analysis and the break-even point to see whether its financially feasible. See how it works in this free tutorial. Continue reading

Gross Profit Ratio

The gross profit ratio indicates how much of each sales dollar is available to meet expenses and profits after merely paying for the goods that were sold. This interactive tutorial explains the gross profit ratio by walking you through the steps, including where Sales and Cost of Goods Sold are on the Income Statement. It lets you use your own numbers — great for checking homework answers! Continue reading