Production Management

What is Break Even Points | Calculation of Break-Even Points

In business profits should not be left to chance. They should be planned. The break-even analysis is a useful technique in this connection. The break-even point (BEP) and break-even charts are the by-products of this analysis which are excellent tools of managerial control over business profits. The break-even analysis is principally concerned with the cost-volume-profit analysis. It magnifies a set of inter-relationships of fixed costs, the level of activity and sales mix to the probability of the concern.

Essentially, it is a tool of financial analysis whereby the impact on profit position of the change in volume, prices, costs and mix can be estimated with reasonable definiteness and accuracy. This analysis, as a matter of fact, is an improvement over the ratio technique of financial analysis. Ratio analysis is concerned with the forecasting of data and as such provides invaluable information on many types of managerial decisions.

Meaning of Break-even Analysis

In the words of Matz and Curry : “Break-even analysis indicates at what level costs and revenues are even equilibrium.” ¬†Thus, break-even analysis is associated with calculation of break-even point. This B.E.P. may be described as a specific level of activity or volume of sales which breaks the revenues and costs evenly. It is also known as ‘no-profit, no-loss-point’. It can be computed mathematically also and charted on a graph paper.

If the BEP is shown on the graph paper it will assume the name of break-even chart. The break-even point can be expressed in terms of units produced, in per cent of plant capacity or in amount of sales. This can be calculated in two ways:

A. Equation of Technique

(i) BEP in units PQ = F. + NQ

Here :

  • P stands for selling price per unit,
  • Q stands for quantity of goods sold,
  • F for fixed costs,
  • V for Variable costs per unit,
  • Q for Quantity of goods produced and sold.

(ii) BEP in value :

S = F x V

Here :

  • S stands for sales. :
  • F for fixed costs. :
  • V for variables costs.

B. Contribution Technique

(i) B.E.P. in units = Fixed Costs/Contribution per unit

(ii) B.E.P. in value = Fixed Costs/ P/V ratio Here : P/V Ratio = Contribution/Sales x 100

Related Articles

Back to top button

akun pro kamboja

slot thailand

spaceman

mahjong ways

slot pulsa

https://hoerakinderschoenen.nl/

https://bergeijk-centraal.nl/wp-includes/slot-deposit-gopay/

slot mahjong ways

https://www.job-source.fr/wp-content/slot-singapore/

https://tentangkitacokelat.com/wp-includes/slot-deposit-gopay/

slot server thailand

akun pro myanmar

slot garansi kekalahan

slot deposit dana

https://slot-myanmar.deparmotor.com/

https://slotserverluarnegeri.deparmotor.com/

https://slot777.devtmp.focim.edu.mx/

https://bet-200.devtmp.focim.edu.mx/

https://slot-thailand.devtmp.focim.edu.mx/

IDN Poker

Slot Server Thailand

https://buggybrolly.com/wp-includes/idn-poker/

https://www.donchuystacoshoputah.com/

https://orderzenseafoodsushigrill.com/

https://www.saltedsalad.com/

https://tastebakerycafe.com/

https://www.order369ramenpokechinesefood.com/

https://www.suiviesante.fr/wp-content/slot-malaysia/

https://www.smokepitgrill.com/

https://www.ilovesushiindy.com/

https://yakikojapanesegrill.com/

https://www.themixxgrill.com/

https://chilangosbargrill.com/

https://tentangkitacokelat.com/wp-content/slot-pulsa/

https://winkelstueck-reparatur.de/wp-includes/slot-pulsa/

https://slot-pulsa.devtmp.focim.edu.mx/

https://kayanscarf.com/

https://www.garage-aymard.fr/wp-includes/slot-qris/

https://nexttech-tt.com/

https://dotnetinstitute.co.in/wp-includes/slot-deposit-gopay/

https://www.yg-moto.com/wp-includes/sbobet/

https://bergeijk-centraal.nl/wp-content/slot777/

https://www.anticaukuleleria.com/slot-myanmar/

https://bergeijk-centraal.nl/wp-includes/slot-bonus-new-member/

https://houseofgabriel.com/wp-includes/slot-bonus/

sbobet

slot777

jurassic kingdom

sbobet

https://houseofgabriel.com/wp-includes/pomo/slot-petir-merah/

https://houseofgabriel.com/wp-includes/pomo/slot-garansi-kekalahan-100/

https://lajme.org/wp-content/sbobet/

https://houseofgabriel.com/wp-includes/pomo/slot777/

https://houseofgabriel.com/wp-includes/pomo/mahjong-ways/

https://houseofgabriel.com/wp-includes/pomo/bca-slot/

https://houseofgabriel.com/

https://www.job-source.fr/wp-content/sugar-rush/

https://repairkaro.com/pragmatic-play/

rtp slot

slot server thailand

pragmatic play

slot pulsa

slot bonus

slot dana

rtp slot

slot pulsa

https://idn-poker.zapatapremium.com.br/

https://sbobet.albedonekretnine.hr/

https://mahjong-ways.zapatapremium.com.br/

https://slot777.zapatapremium.com.br/

https://baksobakarmantap.com/slot777/

https://www.entrealgodones.es/wp-includes/slot-pulsa/

https://slot88.zapatapremium.com.br/

https://slot-pulsa.zapatapremium.com.br/

https://hollyorchards.com/wp-content/pyramid-bonanza/

https://slot777.jikuangola.org/

https://slot777.nwbc.com.au/

http://wp.aicallcenter.ai/wp-includes/widgets/slot-deposit-pulsa/

https://choviettrantran.com/wp-includes/slot-deposit-pulsa/

https://kreativszepsegszalon.hu/wp-includes/slot-deposit-pulsa/

https://www.muaythaionline.org/wp-includes/slot-deposit-pulsa/

https://pgdownloads.enterprisedb.com/slot-deposit-pulsa/

https://lajme.org/wp-content/sbobet/

https://ebook.franchise.7-eleven.com/slot-pulsa/

https://llohan.hollywood.com/slot-pulsa/

https://transition.site5.com/slot-pulsa/

https://fan.iitb.ac.in/slot-pulsa/

Sbobet88

slot server thailand

https://hoerakinderschoenen.nl/

slot777

slot bonus

slot server myanmar

idn poker

https://podcast.peugeot.fr/slot-pulsa/

https://mahjong-ways.softcia.com.br/

https://le-fief-fleuri.fr/core/wp-includes/sbobet/

https://le-fief-fleuri.fr/core/wp-includes/idn-poker/

slot bonus

idn poker

sbobet88

slot gacor

sbobet88

slot bonus

sbobet88

slot myanmar

slot thailand

slot kamboja

slot bonus new member

sbobet88

bonus new member

slot bonus

https://ratlscontracting.com/wp-includes/sweet-bonanza/

https://quickdaan.com/wp-includes/slot-thailand/

https://summervoyages.com/wp-includes/slot-thailand/

Joker123

sbobet88

https://aws-klinkier.pl/wp-content/idn-poker/

joker123

https://thewolfiscoming.com/wp-includes/slot-bonus/

sbobet88

https://www.handwerksform.de/wp-includes/slot777/

https://www.nikeartfoundation.com/wp-includes/slot-deposit-pulsa/

https://lepremier.miami/wp-content/slot-bonus/

https://www.anticaukuleleria.com/wp-content/cmd368/

https://candyhush.com/wp-content/slot-bonus/

https://showersealed.com.au/wp-content/sabasport/

https://tdapelsin.ru/wp-includes/slot-bonus/

https://kreativszepsegszalon.hu/wp-content/slot-bonus/

sbobet88

https://jakartaaids.org/wp-content/sbobet88/

https://ratlscontracting.com/wp-includes/ubobet/

situs slot nexus

situs slot nexus

situs slot nexus

slot bet kecil

slot bet kecil

slot gacor deposit 10 ribu

slot gacor deposit 10 ribu

bonus new member

rtp slot

slot joker123

slot bet 100

slot thailand

slot kamboja

sbobet

slot kamboja

nexus slot

slot deposit 10 ribu

slot777

sbobet

big bass crash slot

big bass crash slot

big bass crash slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

spaceman slot

wishdom of athena

spaceman

spaceman

slot bonanza

slot bonanza

slot spaceman

slot spaceman

Rujak Bonanza

Candy Village

Gates of Gatotkaca

Sugar Rush

Rujak Bonanza

Candy Village

Gates of Gatotkaca

Sugar Rush

Adblock Detected

Please consider supporting us by disabling your ad blocker