Break even point

fixed cost =95000

year            sales            profit

2009         500000         40000

2010         700000         65000

with the above information can we find out the break even point in units how can we calculate

i can calculate in rs. can anyone tell me how can we calculate in points?

Replies (6)
  Sales Profit
     
2010  700,000.00  65,000.00
2009  500,000.00  40,000.00
Dif. in sales/profit  200,000.00  25,000.00
     
Profit Per Unit= 200000/25000           8.00  
     
No. of unit sold 2009= 40000/8 5000  
No. of unit sold 2010= 65000/8 8125  
     
     
Fixed Cost per unit 2009=95000/5000          19.00  
Contribution 2009= FC + Profit = 19+8          27.00  
BEP 2009= FC/Contribution= 95000/27      3,518.52  
     
Fixed Cost per unit 2010=95000/8125          11.69  
Contribution 2010= FC + Profit = 10.69+8          19.69  
BEP 2010= FC/Contribution= 95000/19.69      4,824.22  
   
     
       
       
       
       
       

correct me if i am wrong.

hello devi,

A) DIFFERENCE IN SALES YEAR 2009 & 2010 = RS 2,00,000/- (7,00,000 - 5,00,000)

B) DIFFERENCE IN PROFIT YEAR 2009 & 2010 = RS  25,000/-  (65,000 - 40,000)

C)THEREFORE PROFIT PER UNIT = 2,00,000 / 25,000 = RS 8.00 PER UNIT.

D) NO.OF UNITS FOR THE YEAR 2009 BASED ON PROFIT = 40000/ 8 P.UNIT = 5,000/- UNITS.

E) NO.OF UNITS FOR THE YEAR 2010 BASED ON PROFIT = 65000/ 8 P.UNIT = 8,125/- UNITS.

CONCLUSION;

1) NO.OF UNITS FOR THE YEAR 2009 FOR BREAK EVEN POINT = FIXED COST/ CONTRIBUTION P.UNIT

i.e  95,000/ 27 PER UNIT = 3,518.52 UNITS ( RS 8 PROFIT P.UNIT + RS 19.0 FIXED COST P.UNIT  i.e,,

95,000/ 5000units = 19.00)

2) NO.OF UNITS FOR THE YEAR 2010 FOR BREAK EVEN POINT = 95000/ 19.70 P.UNIT = 4,822.33/- UNITS.

i.e RS 8 PROFIT P.UNIT + 11.70 FIXED COST P.UNIT I.E 95000/ 8125 UNITS = 11.70)

HELLO,

MR. MD RAFI GIII , SHE ASKED TO CALCULATE IN UNITS & NOT IN VALUES GIIIII.

Gr8 job gvgr123, keep it up!

U don't have any friends in cci, I have send request, pl accept.

hello.

MR.M.D RAFI GIIIIIII 

SORRY GIIIIIIIIIIIII

I WANT TO BE ALONE FOREVER

PLZ DONT GET HEARTED BY MY WORDS.

@ gvgr123

I have not dishearted by your words, I always think positive.

Anyway thanks for your reply.

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