Issues with Breakeven Point Analysis: What about the Upper Breakevn Point and the Optimum Level of Output?
Presentation
Overview
Overview
Description
The BEP model has never been extended to determine the locus of the upper BEP or the level of output that maximizes operating profits. The new model developed herein identifies these two points as indicated by operating expenses. Results also suggest Federal Reserve estimates of capacity utilization may be incorrect for two industry samples.
