CHAPTER-6 -COSTS AND BREAKEVEN











https://www.youtube.com/watch?v=tXI3Qdu_Qt8


Concept of break even analysis<br /><ul><li>Fixed costs


FORMULAS FOR CALCULATING BREAK EVEN POINT
1.BEP(IN SALES=   FIXED COST
                                  ___________________    X   SELLING PRICE P/U
                                  CONTRIBUTION P/U




2.BEP(IN UNITS)=  FIXED COST
                              ______________________
                              CONTRIBUTION P/U

3.TOTAL CONTRIBUTION=TOTAL  SELLING PRICE -TOTAL VARIABLE COST


4.PROFIT VOLUME RATIO  =  TOTAL CONTRIBUTION
                                                 __________________________  X100
                                                TOTAL SALES


                        
A business has:  • fixed costs of £500 per week  • variable costs of £15 per    product sold  • selling price is £25      ...
Costs/Revenue    Features of a Break Even Graph                                                                      Reven...



Break-Even Analysis Costs/Revenue Output/Sales FC VC TC TR (p = £2) Q1 Loss Profit


PV Chart



https://www.youtube.com/watch?v=euxpp-okjw0











https://www.youtube.com/watch?v=bGUUWvxOwCU


https://www.youtube.com/watch?v=bBwxPY_Vcts


No comments:

Post a Comment