(Answered) Break-even analysisthis is the point in which revenue or

Management Studies

Break-even analysis.This is the point in which revenue (or savings) from the program equals the cost of the program-the time the company has "broken even" on the cost of the training.

Formula = Break-even point = cost/savings * time

*time is the period of time in which the return is being calculated-if annually, then 12 months.

A program has an annual cost of $70,000 and is expected to generate in return a savings of $80,000. When would the break-even point occur, given steady savings and costs?

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