Cost Volume Profit (CVP) Analysis | Break-Even Analysis | Explained with Example

[@refiloemakhetha6500]

You have explained this so easily, thank you.

[@daphneymaluleke8475]

Thank you for your elaboration. It is understandable

[@kavumamaureen2805]

Thanks so much this has been wonderful

[@arthurkaunda8946]

These things always seems simple here but when in the exams ,eesh whole different ball game :).Thanks,a very excellent tut

[@emmanuelmwansa3890]

😂😂yepp

[@jabulilenkosi9617]

😂😂😂😂

[@rohanthakur9641]

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

[@thewealthymind]

I’ve been finding it so difficult to understand CVP but you just made is simple and brief. Thanks a million 😊

[@avhonahombedzi9753]

This presentation deserves millions of likes🤗, thank you so much💯

[@addisuyimam5049]

Big respect for our African lecture

[@TumeloGaopalangwe]

I have been struggling to understand my lecturer .... Your explanations are very clear and easy to understand. Thanks

[@reneehayes2629]

Thank you for taking the time to help others understand how to calculate CVP. I easily followed the video and understood the formula and purpose of each equation but then immediately forgot, LOL!!!. I will be watching this video on repeat until I can fully memorize all of the varied equations. Wishing you continued success.

[@sheena6325]

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...

[@lawrencemukupe8392]

You made it clear for me. Thank you.

[@melissapetersen1977]

very simply put!!! thanks a million

[@ahmadaljassmi4908]

That was incredibly understandable, keep up.

[@DONEXNAIBEI]

This is fantastinc,I love it

[@isatoumceesay9991]

Maa shaa Allah 🥰🥰🥰I really understand your explanation very well 🥰🥰

[@evansasuma2563]

You've made it so easy. Thank you!

[@washingtoneofula4060]

💯🎉🎊🎊🎊🇰🇪🇰🇪🇰🇪I have learnt three weeks work in less than one hour clip . 👏🥂😎.

[@3urner11]

Excellent lesson

[@rodrigocandido4772]

Amazing video, but is there no video that explains cost volume with multiple products

[@altheahudson3763]

You have made my life much easier where this topic is concerned...thanks a lot!!!

[@SamuelChorokee]

Great Work,I appreciate

[@thapelomodise8217]

You are the best👏👏👏

[@saviopinto5016]

Well done and well explained . thank you

[@bradleythirumurthi]

Awesome video!

[@leratomatlala9716]

Always valuable spending time on this channel, thank you ...

[@preciousmbwezo4588]

Well explained, thank you

[@renaymokoena5907]

This was very helpful. Thank you!

[@nqubekokhumalo6529]

You have just made it clear

[@newtonkangogo8837]

you made me like this topic, simple and very clear explanation. Thank you

[@GG-rs5sm]

Amazing video, thank you.

[@mohamedbaituray8933]

Thanks for this explicit explanation . kindly send me an example using the graph with the various cost lines

[@hellozoom6737]

Thanks lot I understand coz of this clip from university not at all😅

[@mathewmzee8963]

thank you so much for your knowledge.. well explained, this video has been a great help in my exams

[@nkhensanimabunda8970]

For a beginning like me? This makes sense thanks a stax

[@palesaradebe244]

awesome explanation!!! easy to understand and very helpful. thank you

[@memorymwango9448]

Thank you so much, you've made life easier

[@renonaidoo3315]

Absolutely amazing , Thank you.

[@lino6137]

bro is the goat

[@missmmmoimana1261]

Thank you so much.🥺❣❣❣

[@rynkyjking6953]

Thank you so much you lifesaver

[@nkocycindy2455]

thank you so much that was so helpful 💯

[@saidosman1527]

Thank you so much. Jazakallah

[@buyile_beverly]

Beautiful 🥺🙌Thank you

[@sterlingphoenix71]

Outstanding job. Excellent example, very well explained.

[@onyinyeonyibor6309]

Thank you for this very explanatory video..... How did you get "1.1" when calculating sales price per unit

[@youngkeybatigol]

Increase of something by 10℅ that means it is 100%+10%=110%

[@abheethsatharasinghe2490]

Wow nice explanation ❤️‍🔥

[@bulelanindilele5016]

Thanks a million Professor you're good on this 🙏

[@inongenoanga3285]

Thank you so much ☺️☺️☺️

[@eugeneokiri6617]

what better way to understand this.

[@innocentiajoja1430]

When they ask for the aggregate break even for 3 products, how are you supposed to calculate it?

[@fitsummengesha8879]

God Bless You!

[@umutoniyvette9351]

how to calculate 1.1 and 1.2 variable cost per unity

[@bias1145]

Very good explanation! Thank you!

[@nunulala8177]

Where can we get more practice exercises?

[@thebeloved25]

Pls can you explain how you got 1.1 and 1.2?

[@moniquealfred9816]

This really helped thanks, got a test today on this :/

[@rahmaruun5512]

Can u do Account liability and specialized Accounting

[@theclawar9251]

Thanks so much for this video. It makes me understand more

[@nqobienqoh2670]

Thank you its really make sense

[@amanvaish2943]

Is CVP relationship or break even analysis is same

[@amandadube2641]

Thank you so much

[@ayandazinhle9807]

Dankooo❤🎉🎉

[@VibesWithSolape]

Amazing thank you

[@zaneledumisilenkambule2568]

Thank you🙏

[@rochellelily4842]

Please where did you get this 1.1 in calculation of sales price per unit

[@Counttuts]

Which one specifically?

[@rochellelily4842]

The contribution per unit calculation

[@rhinorheins]

Thank you for this .

[@matshepopenelope7048]

how did you get 1.1???

[@linusite1]

sorry , not minus but divided by..
4:27

[@lawrenceokere9574]

How did you get 1.1

[@ramakrishnajinaga2868]

Tq so much sir👍

[@cintaba1]

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]

Profit on sale is not a variable cost, the problem may be something you are missing or the way the question was set.

[@cintaba1]

@@Counttuts I thought as much. Thanks.

[@cintaba1]

@@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.

[@MrMiagi_GP]

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.

[@veronicagida2397]

Thanks. You are helping my Professor explain it clearer😊
I hope you can also cover other topics

[@gracechiwondo5760]

Thanks

[@thapelodangala3864]

Love the accent ❤

[@Ellartheprincess]

The best

[@isaacdube7650]

Thanks my G

[@MeganR-y7w]

Thank you so much sir, your explanation made it so easy to understand CVP .

[@KhodaniMakungoZA]

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

[@hailemariammamo9826]

perfect

[@jeffkamushila3910]

Am lost where the 1.1 is coming from

[@swapnamaysen8937]

Its okay

[@ntcuong01ct1]

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.

[@lefikasegobye3675]

I don't understand what you mean

[@DavidMajurMakeny]

Thank you so much Sir be blessed

[@salamaalkh8467]

Very well explained, thank you.

[@hildahgithara8704]

Thank you so much 🥰

[@jcmxbiggy]

Thank you.

[@OLAWALEFASANYA-y5j]

Thanks for this