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1434093
Break Even
Descripción
Mapa Mental sobre Break Even, creado por Emstar el 09/10/2014.
Mapa Mental por
Emstar
, actualizado hace más de 1 año
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Creado por
Emstar
hace alrededor de 10 años
26
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6
Resumen del Recurso
Break Even
Fixed costs
a cost that will not change with output
Examples-Rent, Salary
variable costs
costs that do change with output
Example-Raw materials, insurance
Break even analysis
Shows the point at which a business expects to start making a profit.
it can be used to calculate the sales needed to make a profit at any given time or price
Working out the break even point
Fixed costs / selling price - variable costs
Table and chart method
Step 1- Work out the table
step 2- plot fixed costs
step 3- plot variable costs
step 4- plot total cost
step 5- plot sales line
step 6- when the sales line and total cost line cross it shows the break even point.
draw a dotted line down to the number on the x axis and that's the break even point
plot Y and X axis on the graph
Calculations
total revenue
number of sales x selling price per unit
Total costs
Fixed costs + variable costs
Profit
Total Revenue - Total costs
Advantages and disadvantages
Advantages
calculate in advance the amount of sales needed to break even
shows changes in output affects profits
Disadvantages
it assumes all output
in accurate graph plotting can mess up the whole graph
Ict
how will it help with break even graphs
more accurate
quicker can make more changes quickly
if you need to add something the computer will do it for you.
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