Breakeven analysis helps the management to find out the point of sales which must be achieved to at least recover the amount spent on manufacturing of product and after that it also helps to find out the point from actual sales to breakeven sales before they start losing as well as to find out the required profit point as well.
Following are the uses: 1 - Profit planning 2 - Capacity planning 3 - Cost planning.
hard to discuss. To really explain it I'd need a graph which I don't have. But Profit maximization is the ATC (Average total cost) and MR (Marginal Revenue) equal each other
Explain the critical differences in profit analysis when conducted under a capitated environment versus a fee-for service environment.
there no difference between break even profit analysis and cost volume profit analysis
limitatios for profit sensitivity analysis
Breakeven analysis guides the management about the production and sales level to recover costs as well as to acheive desired profit level.
Breakeven analysis plays very vital role at start of business or start of planning period as it guides the management that how much units of product must be manufactured and sell to cover full cost before earning any profit or even a predetermined profit as well.
cost volume profit is use anlyse how cost and profit change with change in volume of activity
1. Profit Maximisation is the main objective of a firm" Discuss this statement with the help of an example.
Explain how the marketing concept can be applied in non profit organization?
Cost-volume-profit analysis (CVP), or break-even analysis,
Cost-volume-profit analysis (CVP), or break-even analysis, is used to compute the volume level at which total revenues are equal to total costs.