- Break-even analysis does not include other direct and reimbursable expense.
- Assume that other direct and reimbursable expense is reimbursed dollar for dollar.
- Break-even analysis does not include profit.
- Break-even analysis shows the least amount that can be billed without suffering a loss.
- The break-even rate is a good tool to use in fee negotiations. The desired profit can be added to estimated production cost.
