This article provides a full proof formula to calculate break even point. BEP can be calculated in a number of ways, depending on the nature of the information available. Let us use the following symbols in our calculation: P: Selling price per unit q: sales volume f: fixed cost me v: per unit variable cost. Now for BEP, Sales = [...]
After reading this article you will learn about:- 1. Concept of Break-Even Chart 2. Uses of Break-Even Chart 3. Construction 4. Improving Profit Performance. Concept of Break-Even Chart (BEC): The concept of break-even can be very well explained and analysed by break-even charts. The chart can be used to study the changes in profit/loss at different levels of sales as [...]
After reading this article you will learn about the Ploughing Back of Profits:- 1. Meaning of Ploughing Bank of Profits 2. Necessity of Ploughing Back 3. Factors Influencing Re-Investment 4. Merits 5. Limitations. Contents: Meaning of Ploughing Bank of Profits Necessity of Ploughing Back Factors Influencing the Re-Investment of Profits Merits of Ploughing Back of Profits Limitations of Ploughing-Back of [...]