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Break Even Analysis
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This lesson throws light on break even analysis.

Harshit Aggarwal
Cleared UPSC ESE twice with Rank 63 and 90 in mechanical engg. Got 99 percentile in GATE. Cracked ONGC, BHEL,ISRO, SAIL, GAIL successfully

U
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  1. COURSE : INDUSTRIAL ENGINEERING LESSON: BREAK EVEN ANALYSIS


  2. ABOUT ME Graduated from NIT Nagpur in 2008 Cleared Engineering Services Examination (ESE-UPSC) Exam & Got the offer letter from most of the Maharatna and Navratna Companies * Cleared GATE Exam Rate, Review, Recommend, Share Follow me on Unacademy at: https://unacademy.in/user/harsh.t aggarwal


  3. BREAK EVEN ANALYSIS I. Total Cost 2. Selling Cost 3. Volume of Production One of the technique to study the relation between total cost, selling cost and volume of production is break even analysis Fixedl Cost Total Cest aable


  4. TYPES OF COST Fixed Cost: It remains fixed or constant irrespective of volume of production. These include salaries of higher officers, supervisors, rent, taxes, interest on capital invested, insurance, etc. I. 2. Variable Cost:These vary directly and proportional with output. Direct material cost and direct labour cost are included in variable cost


  5. COST IN PRODUCTION These all are running cost 1. Prime Cost or Direct Cost: Direct Labour + Direct Material + Direct Expenses (Special drawings, tools, layout, jigs, fixtures) 2. Factory Overhead or Factory Expenses: Indirect Material (Cotton, Grease, Lubricant) Indirect Labour (Helper, Supervisor) + Indirect Expenses (Rent, Electricity bill, Telephone bill) 3. Factory Cost Prime Cost + Factory Overhead 4. Total Cost Factory Cost + Marketing, Advertising+ Distribution Cost 5. Selling Cost Total Cost + Profit


  6. BREAK EVEN CHART Maine (GEPsales (F Mas of 0 (BEP)


  7. BREAK EVEN CHART = No. of wtuts produced. BE P Total Sales-Total Cost-Hof CBE sales


  8. THANK YOU