The document discusses cost-volume-profit (CVP) analysis, which examines how changes in volume, costs, prices, and sales mix affect profits. It outlines assumptions of CVP, describes techniques like break-even analysis, and provides examples of using CVP to determine sales volume needed to achieve a profit target or how profits would change with cost/price increases. The document also includes a case study on a tea company analyzing how much variable costs must decrease to maintain profits as sales drop 40% due to eliminating a middleman.
Cost Volume Profit (CVP).
Introduction
Fixed costs
Variable costs
Semi variable costs
Contribution margin
Break even point
PV Ratio
BEP ANalysis.
break even point
Cost-volume-Profit.
the document is on Cost volume profit analysis.
(Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.)
Activity based costing is considered to be useful only for Manufacturing Organizations whereas reality is that it is equally usefull to Service providers
Cost Volume Profit (CVP).
Introduction
Fixed costs
Variable costs
Semi variable costs
Contribution margin
Break even point
PV Ratio
BEP ANalysis.
break even point
Cost-volume-Profit.
the document is on Cost volume profit analysis.
(Cost-volume-profit (CVP) analysis is used to determine how changes in costs and volume affect a company's operating income and net income.)
Activity based costing is considered to be useful only for Manufacturing Organizations whereas reality is that it is equally usefull to Service providers
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.
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
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Adventures in Business Analytics – Optimization and the Organization Garry, s...Tin Ho
Adventures in Business
Analytics – Optimization
and the Organization
Steve Garry
Marketing Optimization and the Organization
November 2014
Generating Better Business
Results Through Analytics
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.
A simple and comprehensive presentation on Profit maximization v/s Wealth Maximization.
By Arvinder Pal Kaur
Faculty of Management
Northwest Group of Institutions
Dhudhike, MOGA
Dear students get fully solved assignments
Send your semester & Specialization name to our mail id :
“ help.mbaassignments@gmail.com ”
or
Call us at : 08263069601
Adventures in Business Analytics – Optimization and the Organization Garry, s...Tin Ho
Adventures in Business
Analytics – Optimization
and the Organization
Steve Garry
Marketing Optimization and the Organization
November 2014
Generating Better Business
Results Through Analytics
Rapid Optimization Application Development Using Excel and SolverMichael Mina
Marketing optimization is the process of determining how to allocate marketing dollars in order to achieve specific goals (e.g., maximize profit), subject to certain constraints (e.g., a fixed marketing budget). This often takes the form of using mathematical techniques to determine who to target, through which channel, and with what message or offer.
A number of optimization applications are commercially available. However, many of them require changes to data and computational infrastructure that are labor-intensive and cost-prohibitive. This presentation will demonstrate how optimization applications can be developed easily and quickly using Excel combined with Excel Solver, even for large marketing campaigns.
This presentation will discuss how segmentation can be used to reduce the complexity of large optimization problems, and how to quickly develop a simple but effective optimization application using Excel combined with Excel Solver.
This presentation will be of interest to those seeking to optimize marketing campaigns of any size while managing operational and computational complexity.
An electronic copy of the Excel worksheet used for optimization is this presentation is available at tinyurl.com/mina2018artforum.
For more course tutorials visit
www.newtonhelp.com
Purpose of Assignment
This activity helps students recognize the significant role accounting plays in providing financial information to management for decision making through the evaluation of financial statements. This experiential assignment requires students to use ratios to evaluate and analyze a company’s liquidity, solvency, and profitability.
Two-Rivers Inc. (TRI) manufactures a variety of consumer products. The company's founders have run the company for thirty years and are now interested in retiring. Consequently, they are seeking a purchaser, and a group of investors is looking into the acquisition of TRI. To evaluate its financial stability, TRI was requested to provide its latest financial statements and selected financial ratios. Summary information provided by TRI is presented below.
Final Research Project Synopsis ppt for viva : Islamic Banking in IndiaAJ Raina
This ppt is based on the synopsis for the Final Research Project on the topic related to relevance, feasibility and scope of Islamic Banking in Indian Context by a student of Era Business School, New Delhi-78
PART ANALYSIS OF CHAPTER NO 3 : BROADENING ACCESS TO FINANCE (From the Study ...AJ Raina
PART ANALYSIS OF CHAPTER NO 3 : BROADENING ACCESS TO FINANCE
(From the Study Report titled, “A Hundred Small Steps”) by students of Era Business School, New Delhi (PGDM 2012-14)
A short description of a tea manufacturer's business process from the point of view of Management Information System; PGDM batch 2012-14 of Era Business School
Case Study on GETTING AIRLINES ALLIANCES OFF THE GROUNDAJ Raina
This case study on GETTING AIRLINES ALLIANCES OFF THE GROUND (International Business) was prepared by the students of Era Business School, New Delhi (PGDM 2012-14 batch)
Usage situation has an importance of its own in consumer behaviour ; with beer as a product, the ppt from a student of Era Business School, tries to explain the issue.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Yes of course, you can easily start mining pi network coin today and sell to legit pi vendors in the United States.
Here the telegram contact of my personal vendor.
@Pi_vendor_247
#pi network #pi coins #legit #passive income
#US
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
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.
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
The secret way to sell pi coins effortlessly.DOT TECH
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Telegram: @Pi_vendor_247
2. SCOPE
• A brief introduction to the topic.
• Case study narration.
• Problem solving.
Era Business School, New
AJ/ Ajay K Raina; PGDM
3. COST-VOLUME-PROFIT ANALYSIS
• COST-VOLUME-PROFIT (CVP) analysis is a systematic
method of examining the effects of changes in an
organization’s volume of activity on its costs,
revenue and profit .
• In other words, CVP analysis helps in analysing the
effects of change in SP or sales volume or sales mix
or fixed costs on the profits of the firm.
Era Business School, New
AJ/ Ajay K Raina; PGDM
4. USAGE OF CVP ANALYSIS IN
MANAGERIAL DECISIONS
•
•
•
•
Product pricing.
Accepting / rejecting sales orders.
What product lines to promote?
What level of output is required to achieve a set
level of net profit?
• Feasibility of profit plan.
• Technology usage.
Era Business School, New
AJ/ Ajay K Raina; PGDM
5. CVP ANALYSIS : TYPICAL QUESTIONS
• How many photocopiers must ABC produce to earn a
profit of, say ₹ 800,000?
• At what sales volume will XYZ’s total revenues and
total costs be equal?
• What profit will PQR earn at an annual sales volume
of, say ₹ 30 million?
• What will happen to the profit of JKL if there is a 20%
increase in the cost of food and a 10%increase in the
selling price of meals?
Era Business School, New
AJ/ Ajay K Raina; PGDM
6. TECHNIQUES OF CVP
• Profit-volume (P/V) or Contribution Margin
analysis; and
• Break-even analysis.
Era Business School, New
AJ/ Ajay K Raina; PGDM
7. ASSUMPTIONS UNDERLYING CVP
ANALYSIS
•
•
•
•
•
•
•
•
•
1. The behavior of total revenue is linear (straight line). This implies that the price of the
product or service will not change as sales volume varies within the relative range.
2.
The behavior of total expenses is linear (straight line) over the relevant range.
Expenses can be categorized as fixed, variable, or semi variable. Total fixed expenses
remain unchanged as activity varies.- The efficiency and productivity of the production
process and workers remain constant
3.
In multi-product organizations, the sales mix remains constant over the relevant range.
4
. In manufacturing firms, the inventory levels at the beginning and end of the period are the
same. This implies that the number of units produced during the period equals the number
of units sold.
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
8. BREAK-EVEN ANALYSIS
• A break-even analysis indicates at what level cost
and revenue areequal and there is no profit and no
loss.BEP: Total costs = Total revenue
• At BEP, Contribution = Fixed costs
• BES (units) = FC / CMPU
• Cash BEP(units) = Cash fixed costCash contribution per
unit
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
9. BREAK-EVEN ANALYSIS
• Total contribution margin available to contribute to cover
fixedexpenses after all variable expenses
• • Unit contribution margin
• • Total contribution margin
• • Weighted contribution margin
• • Contribution-margin ratio
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
11. CHANE IN UNIT VARIABLE EXPENSES
• Capacity 9000
•
• Old BEP - 8,000 units
•
• New BEP - 9,600 units
• CVP analysis in such case would not solve this problem, but
itwill direct the management ‘s attention to potentially
seriousdifficulties
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
12. LIMITATIONS OF CVP ANALYSIS
• CVP analysis suffers from a limitation that it does
notinclude adjustments for risk and uncertainty.
• Contribution itself is not a guide if there is some key
or limitingfactor.
• Decisions by sales staff and marketing personnel may
lead tolow profits or loss.
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
13. AREAS OF APPLICATION IN INDUSTRY
• Banking
• Hotel
• Software
• Non-Profit-Organistions
• Newspaper Industry
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
14. CASE STUDY: AMRITA TEA
• By Prof. K Balakrishnan (C) 1977 by the Indian Institute of
Management, Ahmadabad.
• Amrita tea of Darjeeling had always sold its
products through a sole selling agency. The government
started devising schemes to eliminate middlemen and
Amrita wanted to respond to the new public policy towards
private distribution . This year, Amrita had made a net
profit before tax (NPBT) of 10percent on sale of Rs 20 lakhs.
It is feared that elimination of the sole selling agency and
selling directly to retailers would result in a 40percent drop
in sales next year. Fixed expenses would increase from the
present figure of Rs 2.0 lakhs to 3.0 lakhs owing to the
additional warehousing, distribution, and other marketing
efforts.
Era Business School, New
AJ/ Ajay K Raina; PGDM
15. CASE STUDY: AMRITA TEA
•
• Elimination of middlemen would, of course, save Amrita a
substantial chunk of variable costs. They were not willing to give the
details of the sole selling agency agreement and how much variable
cost they would eliminate by the switch-over. Instead, they wanted
advice on the following:
• How much the variable costs need to be reduced next year in order
to make the same NPBT (not in terms of percentage, but in absolute
amount), under the new scheme as they made this year.
• 2. If they are likely to make a NPBT of Rs 1.8 lakh next year under
the new arrangement, what do you think is happening to
their break-even? Would they have a larger or smaller “margin of
safety,” and by how much?
•
Era Business School, New
AJ/ Ajay K Raina; PGDM
16. Question 1
• How much of the variable costs needs to be
reduced next year in order to make the same
NPBT (not in terms of percentage, but in
absolute amount), under the new scheme as
they made this year?
Era Business School, New
AJ/ Ajay K Raina; PGDM
17. Solution
•
•
•
•
•
Sales = Rs 20,00,000
Profit = 10% Rs 20,00,000
Fixed Cost = Rs 2,00,000
Variable Cost = Sales – (F+P)
= 20,00,000 – (2,00,000+2,00,000)=16,00,000
Era Business School, New
AJ/ Ajay K Raina; PGDM
18. Contd..
• Contribution = sales –variable cost
• = 20,00,000 - 16,00,000= 4,00,000
• P/V Ratio = C/S × 100
• = 4,00,000/20,00,000 × 100= 20%
• B.E.P to earn a profit of Rs 2,00,000
• = fixed cost + desired profit/ P/V Ratio
• = 2,00,000+2,00,000/ 20 × 20,00,000= 20,00,000
Era Business School, New
AJ/ Ajay K Raina; PGDM
19. Contd..
•
•
•
•
II. Margin of Safety = Actual Sales –BES
= 20,00,000-10,00,000
= 10,00,000
i.e., (M/S)/AS × 100 = 50%
•
•
•
•
V.C. to be reduced to make a profit of Rs 2,00,000
= 16,00,000 – 40%
= 16,00,000 – 6,40,000
= 9,60,000
Era Business School, New
AJ/ Ajay K Raina; PGDM
20. Contd..
•
•
•
•
•
•
•
•
•
•
Variable cost = Sales-(FC+Profit)
=12,00,000-(3,00,000+2,00,000)
= 7,00,000
Reduction in Variable Cost
=9,60,000-7,00,000
=2,60,000
Contribution : 12,00,000-7,00,000
=5,00,000
P/V ratio= 5,00,000/12,00,000*100
= 41.67%
Era Business School, New
AJ/ Ajay K Raina; PGDM
22. Question 2
• If they are likely to make a NPBT of Rs 1.8
lakh next year under the new arrangement,
what do you think is happening to their breakeven? Would they have a larger or smaller
“margin of safety,” and by how much?
Era Business School, New
AJ/ Ajay K Raina; PGDM
23. Solution
•
•
•
•
Sales to make a profit of Rs 1,80,000
VC + Profit + FC
Therefore; 7,00,000+1,80,000+3,00,000
= Rs 11,80,000
• Contribution = S – V.C.
• = 11,80,000-7,00,000= 4,80,000
• P/V Ratio = C/S × 100=
• 4,80,000/11,80,000 × 100=
• 40.68%
Era Business School, New
AJ/ Ajay K Raina; PGDM
24. Contd..
• BEP = 3,00,000/40.68 × 100
• = 7,37,463
• M/S = 11,80,000 – 7,37,463
• = 4,42,537
• M/S in % = MS/AS ×100
• = 4,42,537/11,80,000 × 100
• = 37.5%
• V.C. Reduction: from 80% to 59.32%
• i.e., 20.68%
Era Business School, New
AJ/ Ajay K Raina; PGDM