ENGINEERING COSTS
CONCEPTS
AND
COST ESTIMATING
MODELS
• Engineering Economy, William G. Sullivan, Elin M. Wicks, C.
Patrick Koelling; chapter 2 & 3
• Engineering Economic Analysis, Donald G. Newnan, Ted G.
Eschenbach, Jermo P. Lavelle; chapter 2
, Break-Even (B.E) Analysis
A break-even analysis is a financial tool which help
determine the stage at which the company, or a new
service or a product, will be profitable.
In other words, it is a financial calculation for determ
the number of products or services a company shou
sell or provide to cover its costs (particularly fixed co
B.E Quantity (output level) is the relationship betw
Total Revenue and Total Cost and used as decis
making variable.
CONCEPTS
AND
COST ESTIMATING
MODELS
• Engineering Economy, William G. Sullivan, Elin M. Wicks, C.
Patrick Koelling; chapter 2 & 3
• Engineering Economic Analysis, Donald G. Newnan, Ted G.
Eschenbach, Jermo P. Lavelle; chapter 2
, Break-Even (B.E) Analysis
A break-even analysis is a financial tool which help
determine the stage at which the company, or a new
service or a product, will be profitable.
In other words, it is a financial calculation for determ
the number of products or services a company shou
sell or provide to cover its costs (particularly fixed co
B.E Quantity (output level) is the relationship betw
Total Revenue and Total Cost and used as decis
making variable.
