4. Concept of Break Even Analysis 20 4.1 Assumptions 20 4.2 Break –Even point 21 4.3 Limitations 21 5. Break-Even Analysis of mining projects 23 5.1 Break Even analysis of Bolani Ores Mines 23 5.1.1 General Description of the mine 23 220.127.116.11
The break even point is at 10,000 units. At this point, revenue would be 10,000 x $12 = $120,000 and costs would be 10,000 x 2 = $20,000 in variable costs and $100,000 in fixed costs. When the number of units exceeds 10,000, the company would be making a ...
Break-even formula is simple and straightforward to calculate, it depends on what kind of information you are trying to get; break-even point in units or in term of sales dollars . Break-even point in units identifies the number of units sold total revenue to cover the total cost.
Based on the above, calculation of the break-even point can be determined as, i.e. Break-even points in units = $9,000 / $9 Break-even points in units = 1,000 Therefore, PQR Ltd has to sell 1,000 pizzas in a month in order to break even.
Break-Even Point Definition Break-even point is the level of production where the total revenues and total expenses of the company are equal. At the BEP, the revenue of the company by the sale of manufactured products is equal to the total costs incurred in manufacturing the product.
The break even point can be defined as the exact point where sales-expenses = zero. So essentially, you are not making money, but you are not losing money either. This is the point where selling one less item would create a loss and selling one more item would create a profit situation.
In other words, the breakeven point is equal to the total fixed costs divided by the difference between the unit price and variable costs. Note that in this formula, fixed costs are stated as a total of all overhead for the firm, whereas Price and Variable Costs are stated as per unit costs— the price for each product unit sold.
Mineral Processing Plant Design, Practice, and Control Proceedings, Volumes 1-2 Details This book is a comprehensive and authoritative look and the latest thinking in minerals processing plant design and operations from the mining industry’s leading engineers, consultants, and operators.
Break-even point analysis is a measurement system that calculates the margin of safety by comparing the amount of revenues or units that must be sold to cover fixed and variable costs associated with making the sales.In other words, it’s a way to calculate when ...