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BREAK-EVEN ANALYSIS IN RELATION WITH MATHEMATICS

BREAK EVEN ANALYSIS

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What is break even.

Formula of break even. Where we use it. Focus on Profitability. Link with mathematics. Graph analysis.

Findings & Decisions.

What is BreakEven Point

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Break even is a No Loss No Gain Situation. Number of units that must be sold in order

to Produce zero profit. but cover all associated cost. Associated cost can be all variable & all fixed Cost.

FORMULA OF BREAK EVEN

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Break Even Point =

Fixed Cost Selling price-Variable Cost

Uses Of Break Even.

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New Product lounging. Tough Competition Conditions.

Helps in making budgets and estimates.

Focus on Profitability
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The whole concept of break-even stands on

fore-seeing the long term profitability.

Link with Mathematics

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By using linear equations, To determine cost profit revenues functions. To analyze breakeven points and equilibrium points.

Link with Mathematics

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Total Revenue.
TR= Total Revenue TR = P Q Price Quantity

Total Cost. TC = T. Variable Cost + T. Fixed Cost. T .Vc = V. cost per unit T.Quantity Fixed Cost Is Always On Total.

Graph Analysis.
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Findings & Decisions.

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By using linear equations Of Mathematics , We can determine cost profit revenues functions. Analyze breakeven points and equilibrium points. Net profit before tax is determined by profit

function.