New Microsoft PowerPoint Presentation[leverage]

New Microsoft PowerPoint Presentation[leverage] - LEVERAGE...

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LEVERAGE
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Costs Variable operating costs Materials Labor Energy Packaging Sales commissions Fixed operating costs Administrative salaries Insurance Rent Property tax
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Quantity { RS Total Revenue Total Cost FC Breakeven Analysis
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Quantity { Rs Total Revenue Total Cost FC Q1 + - } EBIT Breakeven Analysis
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Quantity { Rs Total Revenue Total Cost FC Break-even point Q 1 + - } EBIT Breakeven Analysis
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Income Statement Sales/Revenues - Variable costs - Fixed costs Operating income/EBIT - Interest EBT - Taxes Net income
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Sales/Revenue - Variable costs - Fixed costs Operating income - Interest EBT - Taxes Net income } contribution margin Income Statement
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Break-even Analysis Calculation of Break-even Quantity Where: Unit Q be = Break-even quantity FC = Total fixed costs p = Sales price per unit vc = Variable costs per unit Q be = FC p – vc
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Break-even Analysis Calculation of Break-even Quantity Example: Fixed Costs = Rs.1,000,000/year Price = Rs.800/unit Variable Costs= 400/unit Q be = FC p – vc
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New Microsoft PowerPoint Presentation[leverage] - LEVERAGE...

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