Break Even Analysis There are different types of costs associated with the production and sale of goods. When looking at a break even analysis there is the need to consider the cost of the units sold and the revenues that is produced. In this case we can use the example of a new line of auto parts, we will assume that one of the latest ranges of air fresheners for the car. Generally speaking there are two types of costs in accounting, fixed costs and variable costs. Fixed costs are those costs that will remain the same regardless of how much is produced. For example, the cost of the building, the cost of insurance, rates and other none changing costs (Chadwick, 2003). Variable costs are the costs that will vary directly in line with the level of production, fir example, the parts that are used in production and transportation costs. There are also some costs that can be classified as semi variable, as they may vary, but only within set parameters, for example, labor. However in this case we will assume the shop labor as the part of the fixed overhead that the product has allocated to it. The labor of production is included in the unit material costs as Autozone is not a manufacturer, they are a retailer and will purchase the goods on a made basis. To consider the costing breakdown and the break even level the first stag is to look at the overheads. This is being looked at over a period of 12