Benefits of Break-Even Analysis:
1. Charts are relatively easy to construct and interpret.
2. It provides useful guidelines to management on break-even points, safety margins and profit/loss levels at different rates of output.
3. Comparisons can be made between different options by constructing new charts to show changed circumstances.
4. The equation produces a precise break-even result.
5. Break-even analysis can be used to assist managers when taking important decisions, such as location decisions, whether to buy new equipment and which project to invest in.