A Dynamic Learning-Curve-Based Break-Even Point Framework for Cost Optimisation and Sustainable Profitability

Abstract: Break-Even Point (BEP) analysis has long been recognised as an essential management accounting tool for profitability assessment, pricing decisions, production planning, and cost control. Despite its widespread application, empirical evidence regarding the relationship between the systematic adoption of BEP analysis practices and organisational performance remains limited. This study examines the influence of break-even analysis practices, particularly cost analysis, contribution margin evaluation, and break-even forecasting, on business success and sustainability. It investigates how these practices support managerial decision-making, improve resource allocation, strengthen financial planning, and enhance an organisation’s ability to respond to market uncertainties and competitive pressures. The study also considers the potential contribution of effective BEP practices to profitability, operational efficiency, financial resilience, and long-term business sustainability. By examining the relationship between the adoption of BEP analysis and organisational performance, the research seeks to provide empirical insights into the value of integrating break-even analysis into routine management practices. The findings are expected to contribute to management accounting literature and offer practical guidance to entrepreneurs, managers, and business owners seeking to improve financial performance and achieve sustainable growth. The study further provides a basis for developing an evidence-based framework for the effective application of BEP analysis in business decision-making.

Keywords: Break-even Analysis, Cost Analysis, Contribution Margin, Forecasting, Business Success, Manufacturing Companies, Services Companies, Correlation Analysis, Break-even Point (BEP), Cost-Volume-Profit (CVP) Theory, Profitability, Pricing Decisions, Production Planning