| Summary: | The study investigated effect of break-even analysis on decision making of listed
manufacturing firms in Nigeria, between 2012 and 2021. Specifically, the study investigated the effect
of selling price, production cost and sale volume on profit after tax of listed manufacturing firms in
Nigeria. The study adopted an ex-post-facto research design and secondary data was gathered to analyze
the effect on the variables. The population of the study consist twenty- five (25) consumable goods
firms listed on the floor of Nigeria Exchange Group as at 30th May, 2023. The study randomly selected
15 firms out of 25 consumable goods firms. The data were collected from annual reports of 15 sampled
listed manufacturing firms covering a period of ten (10) years (2012-2021). The collected data were
analyzed using descriptive, correlation analysis and other post estimation techniques. The decision
making was measured with return on asset. From the results of the findings, it was revealed that profit
after tax is positively affect by the break-even analysis of the listed manufacturing firms 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 manufacturing firms
in Nigeria, especially when measured in term of profit after tax. Based on the findings, it was
recommended that management of manufacturing firms in Nigeria needs to put all possible strategies
in order to lower the production cost to maximizing profit.
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