Breakeven Point

Milestone 7

Breakeven Point

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Order Essay (2014) evaluated the importance of a breakeven analysis and found that it is an important element of management accounting, that helps organizations determine their margin of safety. For Cemex, the margin of safety is 14.19 million tons of cement for the next financial year. Thus, the company must determine the markets where such sales must be made and using the least effort. Failure to secure the margin of safety will definitely mean that the business is not sustainable. If the situation is maintained for a long time, it means that the business will go down. Besides setting the margin of safety, the breakeven point is useful for cost control and price setting. 


Wheelen, Hunger, Hoffman, and Bamford (2017) observe that implementation of strategic plans require the evaluation and sufficient consideration of both internal and external environments. 


Once Cemex makes the investment, it is important to evaluate the progress of the plans. Ebrahim (2013) evaluated how actual companies worked to assess their progress. He found out that the companies under consideration used an actual number of outputs. Others focused on long-term aspects such as long-term outcomes (income, and social impact of the companies). Buckingham and Goodall (2015) revealed that companies need a performance measurement tool that is real, agile, real-time, and one that is customizable. Cemex should thus find means of putting itself and its systems and employees under the microscope to ensure that it walks in the right direction. Evaluation of the implementation plan is necessary to unearth different problems that affect the organization. As such, the management of Cemex is able to devise a means of fixing the problems to ensure that the company is poised for the success it deserves.  

References (2014). The Importance of Breakeven Point. Retrieved

Ebrahim, A. (2013). Let’s be realistic about measuring impact. Harvard Business Review. Retrieved from

Buckingham, M., & Goodall, A. (2015). Reinventing performance management. Harvard Business Review, 93(4), 40-50. Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic management and business policy. [Place of publication unidentified]: Pearson.

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