Break-Even Analysis and Profit Contribution Calculation скачать в хорошем качестве

Break-Even Analysis and Profit Contribution Calculation

The following video outlines the break-even analysis and profit contribution calculation. It defines fixed costs, variable costs and price and then uses a simple calculation to determine a company's break-even point. Fixed costs are those costs the company incurs regardless of what it manufacturers or what it sells. Variable costs pertain to those costs directly attributed to a given product being manufactured or sold. The calculation for break even is fixed costs divided by the sum of the price minus variable costs. The above graph shows a fixed line for fixed costs and then a variable adjusted line that is linear with each additional unit produced. The interception point of the variable cost line with the fixed cost line is the break-even point. Anything below the break even is a loss while anything above is profit. Companies must be aware of their profit contribution portion of the calculation which is simply the price minus variable costs. http://www.driveyoursuccess.com Profit contribution is critical to the break even analysis