Daily Concept Booster Mechanical Engineering: Break Even Analysis Part- 01

Table of Contents

BREAK EVEN ANALYSIS

An important tool used by production manager to analyses the profit or loss possible in future

Fixed Cost

This cost remains fixed or constant irrespective of no. of quantity produced
Fixed cost can be changed. It fixed up to certain value of production.

Variable Cost

Fixed cost varies directly with volume of production

Total Cost

It is the sum of fixed cost and variable cost.

Assumption in BEP

There is a linear relationship between sales volume and cost
Only number of quantities will affect the cost
Selling price is constant
Number of quantities produces and sales are always equal

Boost your preparation with the all-new Concept Booster Series by Adda247 Engineering Jobs, this series aims to target all the important engineering exams such as SSC JE 2022, GATE 2022, ESE 2022, and many more. Please reach out to us with your feedback in the comment section.