Describe the algebraic method of the break even point, Managerial Accounting

Assignment Help:

Algebraic method of the break even point

The break even point can be computed by the following method:

a) Units of sales volume .

b) Budget total or in terms of money value.

c) As a percentage of estimates capacity.

 

a) Break even point in units : as the break even point is the pint of no profits no loss , it is that level of output at which  the total contribution equals the total fixed costs.

b) Break even point in terms of budget total or money value :

c) Break even point as a percentage of estimated capacity : break even point can also be computed as a percentage of the estimated sales or capacity by dividing the break even sales by the capacity sales . for example if a firm has an estimated capacity of 100 000 units of products and its break even point is reached at 50 000 units then the break even point is available the breakeven the break even point .

 


Related Discussions:- Describe the algebraic method of the break even point

How would you characterize the politics of food, Given the persistent probl...

Given the persistent problem with starvation in some parts of the world, and the anticipated population growth in developing nations, do we need genetically modified foods? Is it r

Cross elasticity of demand, what is cross elasticity of demand? is it posit...

what is cross elasticity of demand? is it positive for substitute or compliments? show in a diagram relating to the demand for the coffee to the price of tea

The cost per equivalent whole unit, During the year Leyland Company complet...

During the year Leyland Company completed 1,300 units of product. Ending inventory consisted of 400 units that were 50% complete. The total dollar cost associated with production o

A local retail shoe shop , Shoe Shine is a local retail shoe shop located o...

Shoe Shine is a local retail shoe shop located on the north side of Centerville. Yearly demand for a popular sandal is 500 pairs, and John Dirk, the manager of Shoe Shine, has been

State direct material cost standard, State Direct material cost standard ...

State Direct material cost standard The determination of direct material cost standard would involve: a) Determination of quantity standards and b) Determination of pric

Break Even Sales in Units, Kibble Company had the following functional inco...

Kibble Company had the following functional income statement for the month of July 2011: Kibble Company Functional Income Statement For the Month Ending July 31, 2011 Sales ($40 x

Controlling material flow , Controlling material flow Figure below out...

Controlling material flow Figure below outlines the progressive stages in purchasing, issuing and recording materials in a manufacturing concern. An efficient system of docume

Explain cost volume profit analysis, Cost volume profit analysis Meani...

Cost volume profit analysis Meaning and definition Cost volume profit analysis is a technique for studying the relationship between cost volume and profits . profits of an

Commercial paper, The CP introduced in the Indian financial market, for the...

The CP introduced in the Indian financial market, for the recommendations of the Vaghul Committee has turn into a well-liked debt instrument of the corporate world. Commercial Pape

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd