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

Describe conduct a goodness-of-fit test analysis, A survey performed by Sim...

A survey performed by Simmons Market Research investigated the percentage of individuals in various age groups who indicated they were willing to pay more for environmenlal.ly frie

Explain fixed cost, Explain Fixed Cost. Fixed Cost: Cost may be desc...

Explain Fixed Cost. Fixed Cost: Cost may be described as the amount of expenditure incurred on, or attributable to a specified thing. Fixed costs are those costs that tend t

Define strong technical skills or strong communications, What types of peop...

What types of people have more difficulty being team players? What helps promote good team player behaviour? 3. What do you think is more important for a good IT professional: stro

Explain who are the key stakeholders of global green usa, Who are the key s...

Who are the key stakeholders of Global Green USA? As an advisor to its CEO, Matt Peterson, what would point some possible conflicts among the key stakeholders' interests and what s

Assignment, Analyze the strategic role of operations management in terms of...

Analyze the strategic role of operations management in terms of organizational and operational objectives.

Explain what is the optimal solution, Kentwood Electronics manufactures thr...

Kentwood Electronics manufactures three components for stereo systems: CD players, tape decks, and stereo tuners. The wholesale price and manufacturing cost of each item are: Compo

Provide examples of organizational situations, Give examples of organizatio...

Give examples of organizational situations that would call for transformational, transactional or charismatic leadership. I have an example of transformational, just can't quite

Find annual carrying costs, Garden Variety Flower Shop uses 740 clay pots a...

Garden Variety Flower Shop uses 740 clay pots a month. The pots are purchased at $2 each. Annual carrying costs per pot are estimated to be 30 percent of cost, and ordering costs a

What are long-term, What are long-term, departmental and Non-Economic decis...

What are long-term, departmental and Non-Economic decisions? If long term decisions, the time period covered is long and the risk included is more. Departmental decisions rela

What is a quality management system, Question: (a) What is a Quality Ma...

Question: (a) What is a Quality Management System (QMS) and why should an organization implement a Quality Management System? (b) Explain the eight fundamental Quality Manag

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