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

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.

Daily Concept Booster Mechanical Engineering: Break Even Analysis Part- 01 |_40.1

Variable Cost

  • Fixed cost varies directly with volume of production

Daily Concept Booster Mechanical Engineering: Break Even Analysis Part- 01 |_50.1

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.Daily Concept Booster Mechanical Engineering: Break Even Analysis Part- 01 |_60.1

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Published by VINAYAK KUMAR

Graduated from BIT Sindri, Postgraduated from IIT BHU Varanasi

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