In this article we will discuss about:- 1. Definition of Break-Even Analysis 2. Formulae for Break-Even Analysis 3. Assumptions and Limitations of Break-Even Analysis 4. Profit-Volume Ratio 5. Margin of Safety 6. Profit Volume Ratio 7. Angle of Incidence 8. Relationship of BEP, Margin of Safety and Angle of Incidence. Definition of Break-Even Analysis: Break-even analysis refers to 'ascertainment of [...]
Here is a compilation of top eight problems on break-even analysis with their relevant solutions. Break-Even Analysis: Problem with Solution # 1. From the following particulars, calculate: (i) Break-even point in terms of sales value and in units. (ii) Number of units that must be sold to earn a profit of Rs. 90,000. Solution: Break-Even Analysis: Problem with Solution [...]
This article provides an overview on Break Even Analysis:- 1. Meaning of Break-Even Analysis 2. Assumptions of Break-Even Analysis 3. Break Even Point 4. Types of Break-Even Point 5. Graphic Method 6. Assumptions Underlying Break-Even Charts 7. Advantages of Break-Even Charts 8. Limitations of Break-Even Charts 9. Margin of Safety 10. Angle of Incidence 11. Profit-Volume Graph 12. Curvilinear. Contents: [...]