How break even analysis helps in solving the problems, Operation Management

Assignment Help:

How Break even Analysis helps in solving the problems.

Break even Analysis assists solving the problems of following:

 (a) What volume of sales will be necessary to cover?

  - A reasonable return of capital in use

 - Ordinary and preference dividends

 - Reserves

(b) To calculate costs and revenues for all possible volumes of output to fix budgeted sales

(c) To get the price of an article to provide the desires profit

(d) To find out the variable cost per unit

(e) To evaluate a number of business enterprises through arranging their earnings in order of magnitude.

The Break Even Point (BEP) can be computed by using the relation as follows:

BEP = F/(1-V/P)

Here F is fixed cost and V is variable cost per unit or total variable cost and here P is the selling price of each unit.


Related Discussions:- How break even analysis helps in solving the problems

Five forces in strategic business plan, Based on your analysis, select one ...

Based on your analysis, select one of the five forces and explain how Bill can incorporate his analysis of that force into his Strategic Business Plan (SBP).

Explain modern sweatshops are a problem, 1) List the four schools of though...

1) List the four schools of thought along with the basic cause of the labour problem and solution to the labour problem for each. 2) Explore the online exhibit about the 1911 Tr

Availability of raw materials , Factors responsible for plant location choi...

Factors responsible for plant location choice - Availability of Raw Materials Areas where industrial raw materials are easily available obviously exert greater pull on locatio

Prouction n operation management, Q3. What do you understand by “line balan...

Q3. What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain server used as a firewall, Which of the following could not be used...

Which of the following could not be used as a fire wall? a. hub b. router c. server d. PC

#operational performance, what are the 5 operational performance objectives...

what are the 5 operational performance objectives may influence decision making associated to process design and layouts

Explain socially responsible company, In light of these actions, can GM sti...

In light of these actions, can GM still be a socially responsible company? If so, how?

Explain regression equation relating expected travel, Accountants at the fi...

Accountants at the firm Walker and Walker believed that several traveling executives submit unusually high travel vouchers when they return from business trips. The accountants too

Explain what are the three elements that require integration, What are the ...

What are the three elements that require integration to be successful in operations and supply chain management?

Objectives of production control, Objectives of Production Control An...

Objectives of Production Control An enterprise wishes to obtain the following objectives through production control: 1.Making necessary arrangement for the production of goo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd