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Graphic Presentation

Graphic Presentation Under the algebraic technique of break-even analysis, separate computations were needed to arrive at the above set of figures. The utility of the graphical technique is that such a set of figures can be determined without involving any separate...

Break-even Point (Tables)

Break-even Point TABLES Increasing the mix of high P/V products ( Y from 30 to 40 per cent, Z from 20 to 30 per cent) and decreasing the mix of a low P/V product (X from 50 to 30 per cent), the company can increase its overall profitability. In fact, it can further...

Multi-product Firms (Sales-mix)

Multi-product Firms (Sales-mix) So far, we have confined our discussion to a one-product company. However, many manufacturers make more than one type of product. The relative proportion of each product sold in the aggregate sales is known as the sales-mix. A changes...

Effects of Multiple Changes

Effects of Multiple Changes So far we have assumed that a change takes place in one of the three variable affecting profits – cost, price and sales volume. In cases where more than one factor is affected, the BEP analysis can he applied as shown below: [vfb...