The document discusses break-even point (BEP) charts and concepts. It explains that a BEP chart has three lines: fixed costs, total costs, and sales. The point where the total costs and sales lines intersect is the break-even point, where total revenue equals total costs and there are no profits or losses. Lowering fixed costs or increasing sales can lower the break-even point, which is better for businesses as it requires less output to start generating profits.

1. Cost
BEP start with 2 important
axes (line). Cost and Output
Output
Watch the movie on BEP Charts at :
http://www.youtube.com/watch?v=B_Nepzytv8c
Sunday, December 15, 13

2. Cost
Next, is the COST line. The
most important line is the
Total Fixed Cost (FC) line. You
need to calculate and identify
your FC. Pls be precise as u
can.
Fixed Cost
Output
Sunday, December 15, 13

3. Cost
FC line is a straight line.
Why? because how much the
output u made, the FC will
not change =
increase@decrease.
Fixed Cost
Output
Sunday, December 15, 13

4. Cost
Sample =
Output 1000units : FC RM100
Output 500units : FC RM100
Output 2000units : FC RM100
Fixed Cost
Output
Sunday, December 15, 13

5. Cost
Next is, Total Cost line. (FC +
Variable Cost). The TC line will
move upward because it is a
cumulative cost for every unit
of output.
Fixed Cost
Output
Sunday, December 15, 13

6. Cost
Next is, Total Cost line. (FC +
Variable Cost). The TC line will
move upward because it is a
cumulative cost for every unit
of output.
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Fixed Cost
Output
Sunday, December 15, 13

7. Cost
As mention before, FC is
static, so why Total Cost is
keeps increasing? The answer
is : The Variable Cost (VC) of
each outputs is not static
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Fixed Cost
Output
Sunday, December 15, 13

8. Cost
Sample =
Output 100units : VC RM100
Output 50units : VC RM25
Output 200units : VC RM200
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Fixed Cost
Output
Sunday, December 15, 13

9. Cost
Now, lets see where is FC and
VC located.
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Fixed Cost
Output
Sunday, December 15, 13

10. Cost
Now, lets see where is FC and
VC located.
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Variable Cost
Fixed Cost
Output
Sunday, December 15, 13

11. Cost
Now, lets see where is FC and
VC located.
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Variable Cost
Fixed Cost
Fixed Cost
Output
Sunday, December 15, 13

12. Cost
Next, Lets draw Sales line. It
is cumulative amount,
therefore the line will always
be uptrend. Start with zero
(0) value. The degree of sales
line will depend on sales
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Fixed Cost
Output
Sunday, December 15, 13

13. Cost
Next, Lets draw Sales line. It
is cumulative amount,
therefore the line will always
be uptrend. Start with zero
(0) value. The degree of sales
line will depend on sales
s
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Fixed Cost
Output
Sunday, December 15, 13

14. Cost
We can see three the basic
Now we have all
(3) saleslocate the BEP point.
Line to condition
Then, where is BEP?
es
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Fixed Cost
Output
Sunday, December 15, 13

15. Cost
We can see three the basic
Now we have all
(3) saleslocate the BEP point.
Line to condition
Then, where is BEP?
Sales at
BEP
es
al
S
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The POINT where Sales
Line met/cross with Total
Cost Line MEANS that
TOTAL SALES is Equal to
TOTAL COST = NO
PROFIT is generated
Fixed Cost
Output
Sunday, December 15, 13

16. Cost
We can see three
(3) sales condition
Sales at
BEP
Sales ABOVE Total Cost
Sales at
PROFIT
es
al
S
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Sales at
LOSS
Sales BELOW Total Cost
The POINT where Sales
Line met/cross with Total
Cost Line MEANS that
TOTAL SALES is Equal to
TOTAL COST = NO
PROFIT is generated
Fixed Cost
Output
Sunday, December 15, 13

17. Sales ABOVE Total Cost
Cost
Sales at
PROFIT
Sales at
BEP
es
al
S
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Sales at
LOSS
Sales BELOW Total Cost
The POINT where Sales
Line met/cross with Total
Cost Line MEANS that
TOTAL SALES is Equal to
TOTAL COST = NO
PROFIT is generated
Fixed Cost
Output
Based on the above BEP charts, now u can easily see and
verify either your SALEs is good or bad. I believe all
businessman want to make profit not vice versa. The
minimum sales off coz will be at BEP point.
Sunday, December 15, 13

18. Now, we can say that the
lower BEP is the better for
the company.
Sales at
BEP
es
al
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Fixed Cost
Sunday, December 15, 13

19. How to lower our BEP? firstly,
we can reduce our FC which
will reduce the Total Cost.
Sales at
BEP
es
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Fixed Cost
Sunday, December 15, 13

20. Or we can increase the sales.
Off coz its need correct
strategies and approaches
es
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Sales at
BEP
Fixed Cost
Sunday, December 15, 13

21. Cost
Thats all from me. Tq for
watching. Pls email to
aku5299@gmail.com for
any info
Sales at
BEP
Sales ABOVE Total Cost
Sales at
PROFIT
es
al
S
ost
lC
ota
T
Sales at
LOSS
Sales BELOW Total Cost
The POINT where Sales
Line met/cross with Total
Cost Line MEANS that
TOTAL SALES is Equal to
TOTAL COST = NO
PROFIT is generated
Fixed Cost
Output
Watch the movie on BEP Charts at :
http://www.youtube.com/watch?v=B_Nepzytv8c
Sunday, December 15, 13