PPT-COST-VOLUME-PROFIT ANALYSIS AND BREAK-EVEN ANALYSIS

CHAPTER OBJECTIVES Meaning of Costvolumeprofit analysis Objectives of Costvolumeprofit analysis Assumptions of Costvolumeprofit analysis T echniques or elements of Costvolumeprofit analysis. A static data structure only answers queries a dynamic data structure also allows us to modify the data set by inserting or deleting individual items A search problem is decomposable if for any pair of disjoint data sets and the answer to a query o Safety Break Safety Break Safety Break Safety Break Safety Break Safety Break Lap Swim (2) Open Swim (2) Lap Swim (2) 10:00am-4:25pm Open Swim (2) 12:10pm-2:30pm Safety Break Safety Break Safety Bre Cost-Volume-Profit Analysis. Assumptions of CVP. Cost-Volume-Profit in Graph. Total Revenue. Line. Total Cost. Line. Number of Coffee Drinks Served. Loss. $18,000. Target . Profit. Break-Even. Point. Based on the books: . Building Lean Supply Chains with the Theory . of . Constraints . M. anaging . Business Process Flow . Throughput Profit Multiplier (TPM). A large fraction of the operating costs are fixed . maximization. Economic profit = total revenue - all economic costs. Economic costs include accounting cost. (. explicit. . costs. ). and opportunity costs (implicit. . costs. ).. Profit maximization. Operations Management. Dr. . Ron . Lembke. Break-Even Analysis. Given a fixed cost, how many do we have to make to break even?. A: buy units @ $200. B: Make on lathe: $80,000 + $75 each. C: . CNC Machining . Marginals. for linear functions. Break Even points. Supply and Demand Equilibrium. Applications with Linear Functions. Cost, Revenue, Profit, . Marginals. Cost: C(x) = variable costs + fixed costs. Revenue: R(x) = (price)(# sold). SUBJECT. : . . ECONOMICS AND MANAGEMENT. DEPARTMENT :EC . SEM:3. rd. PREPARED BY: . PARIHAR SHIPRA A. (130500111012). PARMAR KINYARI P. (130500111013). PATEL DHARA H. (130500111014). GUIDED BY: . 6. Learning Objectives. Apply basic CVP concepts.. 1. Explain the term sales mix and its effects on break-even sales.. 2. Determine sales mix when a. company has limited resources.. 3. Indicate how operating leverage affects profitability.. Paul D. Mitchell. Professor . of Agricultural & Applied . Economics. Director of . Renk. Agribusiness Institute, UW-Madison. pdmitchell@wisc.edu. . . 608-265-6514. http://www.aae.wisc.edu/pdmitchell/extension.htm. Dr. . Ron . Lembke. Break-Even . Profit quantity. How much do sales have to grow to make an investment pay off?. Fixed costs = $10,000. Direct labor = $1.50 / unit. Material = $0.75 / unit. Sales price = $4.00. 3.1 Accuracy Activity: Break Scoop & Read Break, Scoop & Read 10 words from current module. T. displays a word and asks: Where do we break? Between ___ and ___. (S . respond chorally). Behind the Supply Curve. Profit . Profit = Total Revenue – Total Cost. Primary goal of a firm is to maximize profit. Can be done in two ways. Increase revenue. Reduce costs. What types of costs exist?. 1. This Photo. by Unknown Author is licensed under . CC BY-SA. Unrealised profit: Closing inventory. Reminder of the principle from FIAC6212. Example. P (parent) sold inventory to S (subsidiary) at cost plus 20%. .