The document provides an overview of break-even analysis. It defines break-even point as the level of sales or production where total revenue equals total costs, resulting in no profit or loss. It explains fixed and variable costs and how to calculate break-even point algebraically as fixed costs divided by the difference between selling price and variable cost per unit. An example calculates that a company needs to sell 10,000 Christmas trees at $8 each to cover its $30,000 in fixed costs and $5 variable cost per tree.
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
INTRODUCTION
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".
Total cost = Total revenue = B.E.P.
Break-even analysis is a study of costs, revenues and sales of a firm and find out the volume of sales where the firm’s costs and revenues will be equal. The Break-even point is the zone of no-profit and no-loss as the costs equal revenues.
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
INTRODUCTION
A breakeven analysis is used to determine how much sales volume your business needs to start making a profit.
The breakeven analysis is especially useful when you're developing a pricing strategy, either as part of a marketing plan or a business plan.
In economics & business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even".
Total cost = Total revenue = B.E.P.
Break-even analysis is a study of costs, revenues and sales of a firm and find out the volume of sales where the firm’s costs and revenues will be equal. The Break-even point is the zone of no-profit and no-loss as the costs equal revenues.
INFORMATION ABOUT
B.E.P.
Definition
Cost Volume Profit analysis & Application
Assumption of BEP analysis
Calculation
Method
Formula
Target profit
Margin of safety
Definition
Formula
Limitation of B.E.P.
Basic equation of Marginal Costing
Uses Of CVP Analysis
Limitations Of CVP Analysis
Profit Volume (P/V) Ratio
Marginal costing
Determination Of Marginal Cost
Features of Marginal Costing
To understand the basic concepts of marginal cost and marginal costing.
To understand the difference between the Absorption costing and Marginal Costing.
To learn the practical applications of Marginal costing.
To understand Breakeven charts & Limitation
In economic practices, there are several methods to determine the price and quantity of the goods and services. Determination of price and output depends on the objectives of the firm as well as competitors, the nature of the commodity, markets scope and so on. In these slides, I try to show, how price and output determine by using cost-plus and incremental cost techniques.
INFORMATION ABOUT
B.E.P.
Definition
Cost Volume Profit analysis & Application
Assumption of BEP analysis
Calculation
Method
Formula
Target profit
Margin of safety
Definition
Formula
Limitation of B.E.P.
Basic equation of Marginal Costing
Uses Of CVP Analysis
Limitations Of CVP Analysis
Profit Volume (P/V) Ratio
Marginal costing
Determination Of Marginal Cost
Features of Marginal Costing
To understand the basic concepts of marginal cost and marginal costing.
To understand the difference between the Absorption costing and Marginal Costing.
To learn the practical applications of Marginal costing.
To understand Breakeven charts & Limitation
In economic practices, there are several methods to determine the price and quantity of the goods and services. Determination of price and output depends on the objectives of the firm as well as competitors, the nature of the commodity, markets scope and so on. In these slides, I try to show, how price and output determine by using cost-plus and incremental cost techniques.
Cost and production analysis - Cost concepts – Cost and output relationship - cost control – Short run and Long run - cost functions - production functions – Break-even analysis - Economies scale of production.
Fundamentals of EconomicsA. Profit MaximizationProfit Maximi.docxbudbarber38650
Fundamentals of Economics
A. Profit Maximization
Profit Maximization is the determination of the best output in relation to price levels so that returns for the firm are maximized. A company usually has profit goals that must be reach, so various strategies such as reducing production costs, adjusting sale prices, and maximizing output levels are used.
A company should always use profit maximization methods, but these methods may negatively affect consumers if the method results in poor-quality product or higher prices.
Two main methods are use in profit maximization: a) Total Cost-Total Revenue Method and b) Marginal Cost-Marginal Revenue Method.
a) Total revenue to total cost
Total revenue less total cost is the profit, expressed as Π = TR – TC. Total revenue is the total amount of money the company receives from selling its products, or from other aspects of its business operations. Total cost is the sum of all aspects of the company’s production and operations, including non-monetary costs. Non-monetary costs include items that were not paid in cash but were incurred, like the time spent by the owner managing the business, or the equivalent cost of using the land or machineries of the owners, as if they are being rented.
If non-monetary costs will not be included in the computation of revenue, an accounting profit will result, but it will not be the actual economic profit. To obtain the economic profit, all explicit and implicit costs should be accounted for, including opportunity costs.
To find out how much profit the firm actually make, costs have to be determined. All the information can be derived from ATC. As ATC = TC/Q, so TC = ATC x Q. Profit maximization levels can be found by the simple multiplication and subtraction approach. Profit maximization = Total Revenue (TR) – Costs (C). (NEWLY ADDED)
Criterion Score:2.00
Comments on this criterion (optional): The submission explains Total Revenue and Total Cost.
However, the point at which profit maximization is reached and how it is recognized using total
revenue and total cost as criteria could not be located in the submission. Please revise and
resubmit.
b) Marginal revenue to marginal cost
Marginal revenue is the added revenue when one more unit of output is sold. The profit maximizing level of output for monopolists is arrived at after equating its marginal revenue and its marginal cost. This is also the same condition for profit maximization that a perfectly competitive firm uses in determining its output equilibrium level. Marginal revenue equals marginal cost is the condition firms in different market structures use in determining their profit maximizing level of output.
Marginal cost is the cost of the additional unit, or the cost of produce one more unit. It is hard to determine the exact cost of the last unit, but the average cost of a group of units can easily be calculated. The change in costs from a previous level is divided by the change in quantity fr.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
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Turin Startup Ecosystem 2024
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when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. INTRODUCTION..
Break-even analysis is a useful tool to study the relationship
between fixed costs, variable costs and returns.
Break even analysis gives the analysis of the Sales Volume
where the Variable Costs and Fixed Costs of the Products are
recovered.
You can use break-even analysis to determine how much
product or service you need to sell at a specific price to meet
all costs.
3. INTRODUCTION.
Break-even analysis is a mathematical
formula that discloses how much output
must be sold for the business to break
even.
Break-even is reached when the money
coming in equals the money going out.
4. BREAK EVEN POINT
It may be defined as the level of sales at which
the total revenue is equal to total costs and the
net income is zero.
It is the point of activity where total revenue and
total expenses are equal.
This is also known as “No Profit and No Loss”
zone.
Breakeven Point = Fixed Costs/(Selling Price per
unit - Variable Cost per unit)
5. FIXED COST
Cost that do not change when production
or sales levels do change, such as rent,
property tax, insurance, or interest
expense. The fixed costs are summarized
for a specific time period (generally one
month).
VARIABLE COST
Variable costs are costs directly related
to production units. Typical variable
costs include direct labor and direct
materials. The variable cost times the
number of units sold will equal the Total
Variable Cost. Total Variable costs plus
Fixed costs make up the total cost of
production.
6. BREAK EVEN CHART
In its simplest form, the break-even chart is a graphical
representation of costs at various levels of activity shown on the
same chart as the variation of income (or sales, revenue) with the
same variation in activity. The point at which neither profit nor
loss is made is known as the "break-even point" and is
represented on the chart below by the intersection of the two
lines
In the diagram , the line OA represents the variation of income at
varying levels of production activity ("output"). OB represents the
total fixed costs in the business. As output increases, variable
costs are incurred, meaning that total costs (fixed + variable) also
increase. At low levels of output, Costs are greater than Income.
At the point of intersection, P, costs are exactly equal to income,
and hence neither profit nor loss is made.
8. COMPUTATION OF BREAK EVEN ANALYSIS
In the linear Cost-Volume-Profit Analysis model , the
break-even point (in terms of Unit Sales (X)) can be
directly computed in terms of Total Revenue (TR) and
Total Costs (TC) as:
where:
TFC is Total Fixed Costs,
P is Unit Sale Price, and
V is Unit Variable Cost
9. LINEAR BREAK-EVEN ANALYSIS
• Over small enough range of output levels,
TR and TC may be linear, assuming :
– Constant selling price (MR)
– Constant marginal cost (MC)
– Firm produces only one product
– No time lags between investment and resulting
revenue stream
10. LINEAR BEA EQUATION
ASSUME : TR=15Q, TFC=100, TVC=10Q.
THAT IS, IN TERMS OF TR AND TC FUNCTIONS,
TR = TC
HENCE,
TC=TFC+TVC
15Q = 100 + 10Q
5Q = 100
Q = 20
THUS, 20 IS THE BREAK-EVEN OUTPUT. GIVEN TR & TC FUNCTIONS,
PRODUCTION BEYOND 20 UNITS WILL YIELD INCREASING PROFITS,
(AT LEAST IN THE SHORT RUN).
14. Initially a firm will incur fixed costs, these do not depend on
output or sales.
As o/p is generated, the firm will incur variable costs – these
vary directly with the amount produced
The total costs therefore (assuming accurate forecasts!) is
the sum of FC+VC
Total revenue is determined by the price charged and the
quantity sold – again this will be determined by expected
forecast sales initially.
The lower the price, the less steep the total revenue curve.
The Break-even point occurs where total revenue equals
total costs – the firm, in this example would have to sell Q1
to generate sufficient revenue to cover its costs.
15. BREAK-EVEN ANALYSIS
• Study of
interrelationships
among a firm’s sales,
costs, and operating
profit at various levels
of output
• Break-even point is
the Q where TR = TC
(Q1 to Q2 on graph)
TR
TC
Q
$’s
Profit
Q1 Q2
16. TC
B2
TOTAL TR
C & R
BI
F TFC
0
Q1 Q2
OUTPUT PER TIME UNIT
BEA - NON LINEAR GRAPH
17. • TFC line shows the fixed cost and the vertical distance between TC and
TFC measures the TVC.
• The curve TR shows the total sale proceeds or the total revenue (TR) at
different levels of o/p and price.
• The vertical distance between the TR and TC measures the profit or
loss for various levels of output .
• TR and TC curves intersect each other at two points, b1 and b2, where
TR = TC. these are the lower and upper break-even points.
• For the whole range of O/P b/w OQ1 (corresponding to break-even
point, b1) an OQ2 (corresponding to break-even point b2), TR>TC. It
implies that a firm produces more than OQ1 and less than OQ2 will
make profits. In other words, the profitable range of output lies
between OQ1 and OQ2 units of output. Producing less or more then
these limit will result in losses.
18. BEP AND PRICING..
• Importance of Price Elasticity of Demand:
• Higher prices might mean fewer sales to break-
even but those sales may take a longer time to
achieve.
• Lower prices might encourage more customers
but higher volume needed before sufficient
revenue generated to break-even
20. BEP AND PRICING.
Costs/Revenue
Output/Sales
FC
VC
TC
TR (p = Rs.2)
Q1
TR (p = Rs.3)
Q2
If the firm chose to set price higher than Rs.2 (say Rs.3) the TR curve would be
steeper – they would not have to sell as many units to break even.
22. BREAK-EVEN ANALYSIS
Links of BE to pricing strategies and elasticity
• Penetration pricing – ‘high’ volume, ‘low’ price –
more sales to break even
• Market Skimming – ‘high’ price ‘low’ volumes –
fewer sales to break even
• Elasticity – what is likely to happen to sales when
prices are increased or decreased?
23. APPLICATION OF BEA..
•The break-even point is one of the simplest yet least
used analytical tools in management.
• It helps to provide a dynamic view of the
relationships between sales, costs and profits.
• A better understanding of break-even—for example,
expressing break-even sales as a percentage of actual
sales—can give managers a chance to understand
when to expect to break even (by linking the percent
to when in the week/month this percent of sales might
occur).
•The break-even point is a special case of Target
Income Sales, where Target Income is 0 (breaking
even).
24. ASSUMPTION.
The cost and revenue function are linear.
The total cost is divided into fixed and
variable costs.
The selling price is constant.
The volume of sales and volume of
production are identical.
Average and marginal productivity of
factors are constant.
Factor price is constant..
25. • IT IS STATIC AND UNREALISTIC
• Break-even analysis is only a supply side (i.e. costs only)
analysis, as it tells you nothing about what sales are actually
likely to be for the product at these various prices.
• It assumes that fixed costs (FC) are constant
•It assumes that the quantity of goods produced is equal to
the quantity of goods sold (i.e., there is no change in the
quantity of goods held in inventory at the beginning of the
period and the quantity of goods held in inventory at the
end of the period).
..
26. ALGEBRAIC SOLUTION.
• Equate total revenue and total cost functions and solve for Q
TR = P x Q
TC = FC + (VC x Q)
TR = TC
P x Q = FC + VC x Q
Q(P-VC)=FC
Q=FC/(P-VC)
BREAK EVEN SALES=FC*SALES/(SALES-VC)
27. EXAMPLE 1 : How many Christmas trees
need to be sold ?
• Wholesale price per tree is $8.00
• Fixed cost is $30,000
• Variable cost per tree is $5.00
• Solution
Q(break-even) = FC/(P – VC) = $30,000/($8 - $5)
= $30,000/$3 = 10,000 trees
Break even sales are=10000*$8=$80,000