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Important Terms of Break Even Analysis
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This lesson throws light on important terms of 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

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1. COURSE INDUSTRIAL ENGINEERING LESSON IMPORTANT TERMS OF 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/harshit aggarwal

3. IMPORTANT TERMS I. Angle of Incidence (e): It is the angle at which total sales lines cuts the total cost line and if the angle is large it is an indication that profits are being made at a much higher rate otherwise vice- versa. 2) CONTRIBUTION:-(Contrbuhon It is difterence of totel sales It s als calles as Haal total vasiable cost CM= Total sales-. TotaQ variable c0H

4. IMPORTANT TERMS (81) i ves elaion between Volme oneasa.ses -tke Portabilng in elafion 4o ale Total Sales- ot Vaviable Cast Totel sales

5. IMPORTANT TERMS atio e ven Poi Mos oofit BEP Sales ( %),ario Sales) BEP | MoS Sale

6. QUESTION A component can be produced by four processes. To produce 100 units, which process should be used. Processes Fixed Cost Variable Cost 20 50 40 10 IV 4 Total Cost = Fixed Cost + Variable Cost * x TC = FC + v * x =50 + 1 * 100 150

7. QUESTION Fixed Cost Rs 4500/- Total Variable Cost = Rs 7500/- Total Sales = Rs 15000 /- Unit Sold = 5000 Find Out (i) Break Even Point in units (i) Margin of Safety (ii) Profit (iv) Volume of sales to earn profit of RS 6000/

8. SOLUTION 3) MoS ales S-3s) BE Pisale ) os 2-1.s)

9. THANK YOU