Break-Even Analysis and Decision Making: An Empirical Investigation of Selected Listed Non-Financial Firms in Nigeria


  • Ali-Momoh Betty Oluwayemisi Federal University Oye-Ekiti
  • Ibukun Felix Adewole Achievers University
  • Falade Temidayo Olajumoke Achievers University
  • Sunday Ayodeji Adeniyi Achievers University
  • Samuel Samson Ojeme Achievers University


Break-even analysis; Profit after tax; Non-financial firms; Nigeria


The study examined effect of break-even analysis on decision making of listed non-financial firms in Nigeria, between 2010 and 2020. Specifically, the study examined the effect of selling price, production cost and sale volume on profit after tax of listed non-financial firms in Nigeria. The study adopted an ex-post-facto research design and secondary data was gathered to analyze the relationship between the variables. The population of the study consisted fifteen (15) industrial companies listed on Nigeria Exchange Group; however, only five (5) samples were selected from the population. The data was collected from annual reports of 5 sampled listed non-financial firms covering a period of ten (10) years (2010-2020). The collected data were analyzed using correlation analysis, panel regression and other post estimation techniques. The decision making was measured with profit after tax. From the results of the findings, it was revealed that profit after tax is positively impacted by the break-even analysis of the listed non-financial firm in term of selling price and sale volume. Thus, cost of production reported negative effect on profit after tax. The study concluded that break-even analysis has positive effect on decision making of non-financial firms in Nigeria, especially when measured in term of profit after tax. Based on the findings, it was recommended that management of non-financial firms in Nigeria needs to put all possible strategies in order to lower the production cost to maximizing profit.

Author Biographies

Ali-Momoh Betty Oluwayemisi, Federal University Oye-Ekiti

Department of Accounting

Ibukun Felix Adewole, Achievers University

Department of Accounting

Falade Temidayo Olajumoke, Achievers University

Department of Accounting

Sunday Ayodeji Adeniyi, Achievers University

Department of Accounting

Samuel Samson Ojeme, Achievers University

Department of Accounting


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