Final answer:
A break-even analysis requires information on average total cost, average variable cost, and marginal cost.
Step-by-step explanation:
A break-even analysis is a tool used by businesses to determine at what point their total revenue equals their total costs.
To perform a break-even analysis, the following information is required:
- Average Total Cost (ATC): This is the average cost per unit of production, which includes both fixed and variable costs.
- Average Variable Cost (AVC): This is the average cost per unit of production that varies with the level of output.
- Margin Cost (MC): This is the additional cost incurred for producing one additional unit of output.
By analyzing these cost measures, a business can determine the number of units it needs to sell in order to cover its costs and break even.