Burger Point is a fast food joint in Gurugram, India owned by Mr. Sandeep Sharma that sells vegetarian and non-vegetarian burgers. An analysis of their monthly sales of Rs. 360,000 found that their profit was Rs. 133,410, break-even point in units was 1,905, and break-even point in rupees was Rs. 95,240. Their variable costs include ingredients like onions, oil, and sauces, while fixed costs include salaries, electricity, and rent.

1. MANAGEMENT
ACCOUNTING AND
CONTROL
BREAK EVEN ANALYSIS OF
A BUSINESS

2.  Burger point is a fast food joint in sector 22, Gurugram
 Burger point is a fast food joint owns by Mr. Sandeep
Sharma
 Burger point sells both vegetarian and non vegetarian
burger
 Burger point was started in May 2015
 After analyzing the sale, I have reached at the following
conclusions:
Sale during the month : 360000 rs
Profit earned during the month : 133410 rs
Break even point : 95240 rs
Break even point in units : 1905 units

3. Variable Cost ( monthly )
 Onion : 3600
 Oil : 7800
 Tomato : 1800
 Latex Leaf : 4500
 Mayonnaise : 14400
 Cheese : 13800
 Tomato Sauce : 14400
 Mustard Sauce : 10500
 Veg Tikki : 15120
 Non veg Tikki : 65520
 Gas : 185
Fixed Cost ( monthly )
 Salary : 17000
 Electricity : 6000
 Rent : 20000
 Misc. Expenses : 5000

4. Sales : 360000
Variable cost : (178590)
Contribution : 181410
Fixed Cost : (48000)
Profit : 133410
BEP in units : Fixed Cost/ Contribution per unit
= 48000/25.19
= 1905 units
PV Ratio : Contribution / Sales * 100
= 181410/36000*100
= 50.39%
BEP in rupees : Fixed cost / PV ratio
= 48000/50.39%
= 95256 rs

5. Particulars Monthly Annually
Sales 360000 4320000
Variable Cost 178590 2143080
Contribution 181410 2176920
Fixed Cost 48000 576000
Profit 133410 1600920
PV ratio 50.40% 50.40%
Variable cost ratio 49.6% 49.6%
Net margin 37.05% 37.05%
Margin of safety (in rs) 264744 3177140
% MOS to SALES 73.54% 73.54%
MOS in units 5295 63540

6.  Company has to sell 1905 units to achieve break even
point.
 Company has to achieve the monthly sale of 95256 rs
to achieve break even point.
 Break even point will be achieved in 8 days.
 Each unit contributes 14.81 (40-25.19) towards
covering of fixed cost.