Break Even Sales
Break Even Sales means The revenue from sales importent to cover costs and avoid a firm from operating at a loss. The breakeven sales may be relatively stable or may fluctuate, depending on the company or industry. Companies with high breakeven sales points be likely to have large changes in earnings from year to year.
Learning Objectives: Define and explain margin of safety. Calculate margin of safety ratio in Percentage. What is its significance/importance? Calculation of merging of safety in cost volume profit analysis Contents: Definition of Margin of Safety (MOS) Formula of MOS Example Review Problem Definition and Explanation:
Break Even Formula ,analysis, definition and Calculation: Learning Objectives: Define and explain break even point equation. How break even point is calculated by formula or methods of estimating break even point? What are its advantages, assumptions, characteristics and limitations? What are the three approaches of break