Break-Even – strategic analysis and financial applicability

📅 Agenda
Webinar topic:
Break-even Point – Strategic Analysis and Financial Applicability
Date: 22 July 2025
Target audience: financial managers and accountants, practitioners, financial consultants
Trainer: Georgeta Covaliov – Auditor, holder of the international certificate DipIFR
Duration: 6 academic hours

📚 Session 1: 10:00 – 12:00
Introduction to Break-even Analysis, Cost Structure and Contribution Margin

1. What is the break-even point? (definition, purpose, limitations)
2. Importance of analysis in financial planning and control
3. Role of the indicator in strategic decisions
4. Differences between static and dynamic analysis

📌 Support materials: Theoretical sheet + logic chart

5. Fixed vs. variable costs – strict classification
6. Expense examples from real practice
7. Cost behaviour by activity volume
8. Impact of depreciation, rent, labour, etc.

📌 Written exercise: Classify 10 expense types in a real company case

☕ Break: 12:00 – 12:10

⚠️ Session 2: 12:10 – 13:50
Break-even Calculation and Sensitivity Analysis

1. Calculating and interpreting the break-even point
2. Alternative: value-based expression
3. Contribution margin – calculation and meaning
4. How BEP reacts to:

• increase in fixed costs
• changes in selling price
• changes in variable costs

5. Break-even under uncertainty (ex.: seasonality)
6. Method limitations
7. Interpretation and managerial decisions

• using BEP in investment decisions
• pricing and commercial policy analysis
• “make or buy” analysis
• minimum acceptable volume

📌 Written case study: Capacity expansion vs. outsourcing – decision based on BEP

📑 Final session: 13:50 – 14:10
Open discussion: participant Q&A