Thanks a ton... you have explained it so clearly... I, now have no doubts and can tackle any break-even analysis question with full confidence... Thank u once again...
00:02 Cost Volume Profit analysis helps determine how changes to costs and volumes affect profitability. 01:59 The break-even point is where there is no profit or loss. 03:52 To calculate break-even units, subtract fixed costs from contribution per unit and divide the result with the fixed cost per unit. For target profit, add the total fixed costs and target profit, then divide by contribution per unit. 05:40 Margin of safety is the difference between actual sales value and break-even value 07:42 The break-even sales value is calculated as 81,000 Rand and the margin of safety value is 9,000 Rand. 09:34 The break-even point in Ren's for 2020 can be calculated using the fixed costs and contribution margin ratio. 11:30 The break-even point in revenue is 93,500 grand. 13:33 Two ways to calculate break-even point
I don’t know y I thought we only take Fixed manufacturing costs into account on the calculation of breakeven 😏And we only take into account both manufacturing and non-manufacturing variable costs wen calculating the contribution per unit..Someone pls help
Please I have got a question here that line up sales price £4.00 and then goes on to say average variable cost - cost per biscuits £2.00, profit on sale £0.40 and then sum up to £2.40 with total fixed costs of £440.000 .expected annual sales volume (390000 boxes) £1560,000. My question here is why is profit on sale treated as a variable sir?
@@Counttuts One more thing sir, please how do I calculate selling price with 28000 units to sell,£30 variable cost,£94000 fixed cost and required profit of £26000? Thanks.
hi @@cintaba1 You basically approach this question by working backwards from the required profit. How I do it is I make the revenue to be "X". Once you have the revenue, you then divide it by the 28 000 units to get the unit selling price. The following would be the formula: (X multiplied by 28 000 units) less (£30 x 28 000 units) less (£94 000) = £26 000. So you end up having 28 000X = £26 000 + £840 000 + £94 000 Then if you solve for X, you will have X = £960 000 Therefore the unit selling price is £960 000 ÷ 28 000 units = £34,29. I hope this helps.
Dear Friends, I want to confirm: If a company has passed the break-even point, why should we do variable costs minimums and maximum fixed costs then the profits will increase more?. Thank you.
You have explained this so easily, thank you.
Thank you for your elaboration. It is understandable
Thanks so much this has been wonderful
These things always seems simple here but when in the exams ,eesh whole different ball game :).Thanks,a very excellent tut
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😂😂😂😂
I’ve been finding it so difficult to understand CVP but you just made is simple and brief. Thanks a million 😊
This presentation deserves millions of likes🤗, thank you so much💯
Thanks a ton... you have explained it so clearly...
I, now have no doubts and can tackle any break-even analysis question with full confidence...
Thank u once again...
I have been struggling to understand my lecturer .... Your explanations are very clear and easy to understand. Thanks
Big respect for our African lecture
You have made my life much easier where this topic is concerned...thanks a lot!!!
Maa shaa Allah 🥰🥰🥰I really understand your explanation very well 🥰🥰
00:02 Cost Volume Profit analysis helps determine how changes to costs and volumes affect profitability.
01:59 The break-even point is where there is no profit or loss.
03:52 To calculate break-even units, subtract fixed costs from contribution per unit and divide the result with the fixed cost per unit. For target profit, add the total fixed costs and target profit, then divide by contribution per unit.
05:40 Margin of safety is the difference between actual sales value and break-even value
07:42 The break-even sales value is calculated as 81,000 Rand and the margin of safety value is 9,000 Rand.
09:34 The break-even point in Ren's for 2020 can be calculated using the fixed costs and contribution margin ratio.
11:30 The break-even point in revenue is 93,500 grand.
13:33 Two ways to calculate break-even point
You made it clear for me. Thank you.
thank you so much for your knowledge.. well explained, this video has been a great help in my exams
you made me like this topic, simple and very clear explanation. Thank you
This was very helpful. Thank you!
Always valuable spending time on this channel, thank you ...
very simply put!!! thanks a million
Amazing video, but is there no video that explains cost volume with multiple products
Thanks lot I understand coz of this clip from university not at all😅
awesome explanation!!! easy to understand and very helpful. thank you
Thanks for this explicit explanation . kindly send me an example using the graph with the various cost lines
That was incredibly understandable, keep up.
For a beginning like me? This makes sense thanks a stax
Thanks a million Professor you're good on this 🙏
bro is the goat
Thank you so much, you've made life easier
💯🎉🎊🎊🎊🇰🇪🇰🇪🇰🇪I have learnt three weeks work in less than one hour clip . 👏🥂😎.
Thanks. You are helping my Professor explain it clearer😊
I hope you can also cover other topics
Outstanding job. Excellent example, very well explained.
Thank you so much. Jazakallah
You've made it so easy. Thank you!
Very well explained, thank you.
Absolutely amazing , Thank you.
Thanks for this
Thanks so much for this video. It makes me understand more
You have just made it clear
Thank you.
Thank you so much Sir be blessed
Excellent lesson
Amazing video, thank you.
Very good explanation! Thank you!
You are the best👏👏👏
Thank you for this very explanatory video..... How did you get "1.1" when calculating sales price per unit
Increase of something by 10℅ that means it is 100%+10%=110%
Well explained, thank you
thank you so much that was so helpful 💯
Thank you so much.🥺❣❣❣
When they ask for the aggregate break even for 3 products, how are you supposed to calculate it?
God Bless You!
Beautiful 🥺🙌Thank you
Great Work,I appreciate
This really helped thanks, got a test today on this :/
Thank you so much you lifesaver
what better way to understand this.
Thank you its really make sense
Thank you so much sir, your explanation made it so easy to understand CVP .
Awesome video!
Wow nice explanation ❤️🔥
Thank you so much ☺️☺️☺️
Thank you for this .
Pls can you explain how you got 1.1 and 1.2?
I don’t know y I thought we only take Fixed manufacturing costs into account on the calculation of breakeven 😏And we only take into account both manufacturing and non-manufacturing variable costs wen calculating the contribution per unit..Someone pls help
Dankooo❤🎉🎉
Tq so much sir👍
Thanks
The best
Can u do Account liability and specialized Accounting
Thanks my G
Is CVP relationship or break even analysis is same
perfect
Where can we get more practice exercises?
Please I have got a question here that line up sales price £4.00 and then goes on to say average variable cost - cost per biscuits £2.00, profit on sale £0.40 and then sum up to £2.40 with total fixed costs of £440.000 .expected annual sales volume (390000 boxes) £1560,000. My question here is why is profit on sale treated as a variable sir?
Profit on sale is not a variable cost, the problem may be something you are missing or the way the question was set.
@@Counttuts I thought as much. Thanks.
@@Counttuts One more thing sir, please how do I calculate selling price with 28000 units to sell,£30 variable cost,£94000 fixed cost and required profit of £26000? Thanks.
hi @@cintaba1 You basically approach this question by working backwards from the required profit. How I do it is I make the revenue to be "X". Once you have the revenue, you then divide it by the 28 000 units to get the unit selling price.
The following would be the formula: (X multiplied by 28 000 units) less (£30 x 28 000 units) less (£94 000) = £26 000.
So you end up having 28 000X = £26 000 + £840 000 + £94 000
Then if you solve for X, you will have X = £960 000
Therefore the unit selling price is £960 000 ÷ 28 000 units = £34,29.
I hope this helps.
Please where did you get this 1.1 in calculation of sales price per unit
Which one specifically?
The contribution per unit calculation
Its okay
sorry , not minus but divided by..
4:27
how did you get 1.1???
How did you get 1.1
Am lost where the 1.1 is coming from
Love the accent ❤
Dear Friends,
I want to confirm:
If a company has passed the break-even point, why should we do variable costs minimums and maximum fixed costs then the profits will increase more?. Thank you.
I don't understand what you mean
Well done and well explained . thank you
Thank you so much
Amazing thank you
Thank you🙏
Thank you so much 🥰