Break Even Point (in sales dollars) Example
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- čas přidán 24. 09. 2018
- This video walks you through an example of how to calculate the Break-even Point in sales dollars.
To calculate the Break-even Point in terms of sales dollars (or any other currency), you divide the total fixed costs by the Contribution Margin Ratio (the Contribution Margin Ratio is the Unit Contribution Margin divided by the selling price per unit. The Unit Contribution Margin is the selling price per unit minus the variable cost per unit).
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10/10 explanation - Straightforward and to the point. I wish I could like twice.
No cap
Dude, You are seriously one of the best at explaining Accounting 1 and 2.
Took me a long time to figure this out and it was your video that really helped me. Thank you so much!
Very helpful! Have been struggling with this for a while.
Great video man. Can you do an in depth video on process costing please.
You really are good at explaining this complicated formulas thanks a lot
I've logged in just to like this video. Thank you mate, was very helpful video.
Thank you so much for your support! I really appreciate it!
Thanks! Helping out with homeworking.
thanks a bunch! now i'm one step closer to ace my accounting exam! wish me luck
Love it! Love it! Love it!
Well explained thank you
easier solution is subtract S-VC and then you will get the profit. divide the fixed cost to the profit which is 3 dollars and in units you need to sell 80,000 ice cream cones. each of them are 4 bucks so just multiply the units to the selling price.
You rock!!
thank you! great explanation
Glad you enjoyed it!
wow thanks a ton for this, my class focused on units and didn't touch sales at all, then suddenly 'figure out sales dollars'
Thank you
amazing video!
Thank you!
That's so marvelous, very impressive
спасибо большое
Helpful
Hi, the video was really helpful. What is a contribution margin generally?
THANK YOUUUU
is the variable cost per cone the same thing as Average variable cost?
How’s it going! I was just wondering if you had priorly calculated the B.E point in units, could this outcome not be multiplied by the cost p/u of the ice cream sold?
(80,000u’s x $4 p/u sold = 320,000 required for break even)
Love the videos btw they’re seriously helping!
Question why is the fixed cost so high every video i look at its supper high is this over a year period?
Service company
R&D expense , installation fee and assets purchase. Above item need to count into break even revenue?
Hello !
how can i calculate contribution margin an break even points for guesthouses . i have an plan to run guesthouses but i could not calculate it for 4 single rooms , 6 double rooms, and 5 triple rooms and cost for each visitor 20$ for single , 13$ for double and 9$ for triple. variable cost 12$,8$and 5$ respectively. fixed cost 300$ . please help me how can i calculate for guests numbers in order to get break even point thank you
Great video. Took my professor 15 minutes and students still didn't understand lol
Thanks, I'm glad you understand it now!
Please what if I sell more products how can I know break even point for all product not one product ???
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.
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