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Break Even Analysis

Profit
=
Sales Revenue

( Fixed Cost + Variable Cost)

Prepared by: K.Sasikumar 1


Graphical Explanation
Rs.

O
Output Capacity
Prepared by: K.Sasikumar 2
Graphical Explanation
Rs.

Fixed Cost

O
Output Capacity
Prepared by: K.Sasikumar 3
Graphical Explanation
Rs.

Variable Cost

Fixed Cost

O
Output Capacity
Prepared by: K.Sasikumar 4
Graphical Explanation
Rs.

Total Cost

Variable Cost

Fixed Cost

O
Output Capacity
Prepared by: K.Sasikumar 5
Graphical Explanation
Sales Revenue
Rs.

Total Cost

Variable Cost

Fixed Cost

O
Output Capacity
Prepared by: K.Sasikumar 6
Graphical Explanation
Sales Revenue
Rs.

Total Cost

No Profit
No Loss
Variable Cost

Fixed Cost

O Quantity Sold Output Capacity


Prepared by: K.Sasikumar 7
Graphical Explanation
Sales Revenue
Rs.

Total Cost

No Profit
No Loss
Variable Cost

Fixed Cost

O Quantity Sold Output Capacity


Prepared by: K.Sasikumar 8
Graphical Explanation
Sales Revenue
Rs.

Total Cost

No Profit
No Loss
Variable Cost

Targeted Variable Cost

Fixed Cost

O Quantity Sold Output Capacity


Prepared by: K.Sasikumar 9
Graphical Explanation
Sales Revenue
Rs.

Total Cost

No Profit
No Loss
Variable Cost

Targeted Variable Cost

Fixed Cost

O Quantity Sold Output Capacity


Prepared by: K.Sasikumar 10
Graphical Explanation
Sales Revenue
Rs.

Total Cost

No Profit
No Loss
Variable Cost

Targeted Variable Cost

Fixed Cost

O Quantity Sold Output Capacity


Prepared by: K.Sasikumar 11
Graphical Explanation
Sales Revenue
Rs.

Total Cost

No Profit
No Loss
Variable Cost
Targeted Profit

Targeted Variable Cost

Fixed Cost

O Quantity Sold Output Capacity


Prepared by: K.Sasikumar 12

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