This document discusses break-even analysis for three companies. Break-even analysis is used to predict when a business will start making a profit by determining the sales volume needed to cover total costs. It provides the break-even point in units and sales for each company. Company 1 produces bricks and has a break-even point of 10,000 units or Rs. 80,000 in sales. Company 2 produces concrete and has a break-even point of 400 tons or Rs. 333,200 in sales. Company 3 manufactures windows and doors and has a break-even point of 900 units or Rs. 162,000 in sales.

1. BREAK EVEN POINT
Break-even analysis

2. Break-even analysis
predicts when…
… Your business is
going to start
making profit.
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3. It can also be used to:
• Evaluate a start-up
idea
• Assess the impact of
new costs
• Project profitability
for a new product
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4. Start with your costs…
…By separating them into fixed costs (overheads) and
variable costs
It can also be used to:
You need to know your:
•Total Fixed Costs
•Variable Cost Per Unit
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5. The break-even equation:
Total fixed costs
/Contribution per-unit
=
Break Even in units
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6. Company Details
1. Shree Ganesh Bricks
2. Shree Dutta Kripa Ent.
3. Bharucha Concrete
Ready Mix
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7. COMPANY 1 – SHREE GANESH BRICKS
Shree Ganesh Bricks is a small scale company
situated in Nande. It has production capacity of
around 3000 bricks a day. The bricks they
produce are used in pashan,nande,lupin
industries etc.
The raw material they use to made bricks are
cement pieces, water, fly ash.
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8. CALCULATIONS-OF BREAK EVEN POINT
Quantity Produced = 78000 bricks (Per Month)
Total Variable Costs= Rs.390000
Total Fixed Cost=Rs.30000
Total Sales=Rs.624000
Total Cost=Rs.420000
Contribution=Rs.234000
Contribution per-units= Rs.3
BEP(Units) =Total
fixed/contribution per
unit=
30000/3=
10000 Units
BEP(Sales)=BEP(Units)*
price per-unit
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10000*8=Rs.80000

9. COMPANY 2 – BHARUCH CONCRETE READY MIX
Bharuch Concrete Mix is a medium scale
company. It is producing around 120 tones of
20mm concrete. Raw material used are 50%
cement , 20% fly ash, 10% river sand and 20%
Rheoplast. It supply concrete mix in all over Pune.
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10. CALCULATIONS-OF BREAK EVEN POINT
Quantity Produced = 3120 tones
(Per Month)
Total Variable Costs=Rs. 1818960
Total Fixed Cost=Rs.100000
Total Sales= Rs.2598960
Contribution=Rs.780000
Contribution per-units=Rs.250
BEP(Units) =Total
fixed/contribution p/u=
10000/250=
400 tone
BEP(Sales)=BEP(Units)*
price per-unit
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400*833=Rs.333200

11. COMPANY 3 – SHREE DUTTA KRIPA ENT.
Shree Dutta Kripa Ent. is a small scale industry . It
manufactures sliding window, sliding doors and
do the glass work. It is situated in Pashan. Raw
material used are aluminium, steel, rubber PUC,
bolt and glass.
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12. CALCULATIONS-OF BREAK EVEN POINT
Sales =6000units
Total Variable Costs= 60000*130= Rs.780000
Total Fixed Cost= Rs.45000
Total sales= 6000*180 Rs. Per sq feet
= 1080000
Contribution Margin= 300000
Contribution Margin in units= 50
BEP(unit)=fixed
cost/contribution p/u
=45000/50
900 units
BEP(sales)=BEP(Units)*
per-units price
=900*150
=162000
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13. Thank You
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