Using breakeven methods to assess financial feasibility in food processing firms: A case study in pecan shelling

Linear and nonlinear cash breakeven analyses are applied to a pecan shelling firm to assess the feasibility of acquiring a long-term loan for operating capital. The linear analysis is used to find effects of varying volume under average price conditions. The nonlinear breakeven is developed and applied to capture the effects of changing margins due to aggregate production changes. Combination analyses are used to examine effects of changes in market share and aggregate production.