Скачать или смотреть VHSE second year ED break even analysis-contribution and profit statement

t Sales = Total cost + Profit Total cost = Fixed cost + Variable cost Contribution = Sales – Variable cost By From the above equation, we can find out ; Sales = Fixed cost + Variable cost + Profit Contribution = Fixed cost + Profit Fixed cost = Total cost – Variable cost Variable cost = Total Cost – Fixed cost Contribution and Profit statement we can also find out contribution by drawing a statement. Contribution and Profit statement
Sales xxxxx
Less : Variable cost xxx
Contribution xxxxx
Less : Fixed cost xxx
Profit xxxx Break Even Analysis : In narrow sense, it refers to a technique of determining BEP. In its broad sense, break even analysis refers to the study of relationship of cost-volume and profit (CVP Analysis) at different levels of activities. Break even point (BEP) It is that point of sales, at which total revenue is equal to total cost. It is the point of no profit no loss. BEP (in Units) = Fixed cost / Contribution per unit BEP (in Sales) = Fixed cost / PV Ratio Profit Volume (PV) Ratio = Contribution / sales X 100 We can also apply the following equations to find out BEP. BEP (in units) = BEP (in sales) / Selling price per unit BEP (in sales) = BEP (in units) X Selling price per unit BEP (in sales) = Fixed cost X Sales / Contribution or F X S / C PV Ratio = Change in profit / Change in sales X 100 Contribution per unit = Selling price per unit – Variable cost per unit