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

What is the number of orders per year if the manager uses, A flower shop us...

A flower shop uses 800 clay pots a month. The pots are purchased at $2 each. Annual carrying costs are estimated at $0.60 per pot per year and ordering costs are $20 per order. The

Describe the pivot initiative at midwest bank, Complete the case study The ...

Complete the case study The PIVOT Initiative at Midwest Bank, Part I, starting on page 358. On the basis of the information: • Prepare a 3 to 5 page paper discussing what conclusio

North west corner rule, advantages and disadvantages of north west corner r...

advantages and disadvantages of north west corner rule

Explain when a firm is able to move to an assemble, When a firm is able to ...

When a firm is able to move to an assemble- To- Order capability from a make -To- Stock approach, there can be a substantial reduction in the number of things that must be tracked

Need of computer-integrated manufacturing, Q. What is need of computer-inte...

Q. What is need of computer-integrated manufacturing to manufacturing operations? Computer-integrated manufacturing (CIM) implies manufacturing supported through computers. The

Analyze the environment and processes and procedures, Analyze the environme...

Analyze the environment, processes, and procedures at your work or school to determine which aspects can be controlled and which cannot be controlled. Explain your rationale. •From

Explain the behaviours of leaders modelling excellence, Describe the behavi...

Describe the behaviours of leaders modelling excellence. How do you assess excellence and how does that inspire you to perform at a higher level?

Explain all types of worker's participation, Explain all types of worker's ...

Explain all types of worker's participation. Types of Worker's Participation - Worker's participation in management may take several forms, for example:   (a) Formal partici

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