What is the main purpose of break-even analysis?

The main purpose of break-even analysis is to determine the sales volume at which total revenues equal total costs, resulting in neither profit nor loss. This concept is essential for businesses as it helps them identify the minimum level of output or sales needed to cover their costs.

Understanding the break-even point allows businesses to make informed decisions regarding pricing, budgeting, and overall financial strategy. It provides a visual representation of the relationship between costs, revenues, and profitability, enabling companies to assess the viability of new products or changes in their business model. This analysis is particularly useful in planning and can inform strategic choices, such as how many units need to be sold before a project becomes profitable.

The other options touch on different aspects of business management but do not align with the specific objective of break-even analysis. While maximizing profits is a broader business goal, break-even analysis does not directly aim to achieve this. Evaluating market trends and assessing customer satisfaction are important components of a business's overall strategy but are not related to calculating the break-even point.