PPT-Breakeven Analysis

This module covers the concepts of variable fixed average and marginal costs contribution contribution margin unit and dollar breakeven analysis Author Paul Farris Marketing Metrics Reference Chapter 3. A breakeven point de57375nes when an investment will gener ate a positive return and can be determined graphically or with simple mathematics Breakeven analysis computes the volume of production at a given price necessary to cover all costs Breakeve Implementing the NPV Rule. Ocean Carriers. January 2001, Mary Linn of Ocean Carriers is evaluating the purchase of a new capesize carrier for a 3-year lease proposed by a motivated customer.. Ocean Carriers owns and operates capesize dry bulk carriers that mainly carry coal and iron ore worldwide.. Ani. spends £1000 on hiring a hall and disco. She sells 200 tickets at £6.00 each. Has she made a profit or a loss?. Bradley buys a second hand bike on . ebay. for £200, he spends £50 doing it up and then sells back on . Cost of Establishment. August 5, 2008. 1. Chapter 2, The North Carolina Winegrape Grower’s Guide. Carlos Carpio, Ag Econ, Clemson. Charles Safley, ARE, NCSU. Barclay Poling, HS, NCSU. 2. Estimate the cost of producing & harvesting muscadine grapes (wine grapes). . Breakeven Achieved by Selling Only Product Y = . Fixed Cost. CM. Y . .. A One Unit Reduction in Sales of Product Y . levels may vary considerably between different sod production systems, markets, and varieties . Selected Resources  The Business of Sod Production (University of Kentucky, 2001) http://www.uky.e University of North Florida. ACG 4361. 1. Basic Cost-Volume-Profit Analysis . 4-2. Cost-Volume-Profit (CVP) Analysis. A very powerful decision making tool . Is what-if sensitive. Helps explain interactions between. Principles of Cost Analysis and Management. © Dale R. Geiger 2011. 1. How do NAF organizations do this?. User Fees . Costs. © Dale R. Geiger 2011. 2. Terminal Learning Objective. Action: . Calculate breakeven . Engineering Economy. 7. th. edition. Leland Blank. Anthony Tarquin. Chapter . 13. Breakeven and Payback Analysis. © 2012 by McGraw-Hill All Rights Reserved. LEARNING OUTCOMES. © 2012 by McGraw-Hill All Rights Reserved. through What-if . Scenarios. Intermediate Cost Analysis . and Management. 1. 4.3. We assume cross traffic will stop. What if our assumption is incorrect?. 2. Terminal Learning Objective. Action: . Identify Sensitive Variables through What-if Scenarios. 1. What is breakeven?. Extension: A business buys shorts for £5 and sells them for £18.. The business has fixed costs of £5000. How many shorts do they need to sell to breakeven? . FIXED COSTS. (PRICE – VARIABLE COSTS). Outline the legal constraints on pricing.. Identify the major categories of pricing objectives.. Explain price elasticity and its determinants.. List the practical problems involved in applying price theory concepts to actual pricing decisions.. This critical point is known as the Breakeven Point.. It is where you have sold enough items to break even.. The bigger the profit margin per item – the less items you need to sell to breakeven.. Types of Costs. What is profit?. Profit is when the total revenues of a business are greater than its total costs. What is cash flow?. Cash flow is the movement of money into (inflows) and out of(outflows) the business.