session111 - Break-even? Definitions Total Profit = Total...

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1 Break-even? Definitions Total Profit = Total Revenue - Total Cost Break even just means that profit (or profit change)=0 0=Total Profit=Unit Volume*(Unit Price – Unit Variable Cost) – Total Fixed Cost Unit Volume*(Unit Price – Unit Variable Cost) = Total Fixed Cost Unit Volume*Unit Contribution= Total Fixed Cost Now, solve for any variable you want Total break even volume solve for Unit Volume Break even price solve for Unit price Break even Unit Contribution solve for Unit Contribution
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2 Break Even Old Unit Volume * Unit Contribution Loss Incremental Break Even Unit Volume (IBEV) = New Unit Contribution Total Fixed Cost Total Break-Even Unit Volume (TBEV) = Unit Contribution Incremental Expenditure Incremental Break Even Unit Volume (IBEV) = Unit Contribution Total Fixed Cost + Depreciation Total Break-Even Unit Volume (TBEV) - Accounting= Unit Contribution Incremental Expenditure + Old Unit Volume * Unit Contribution Loss IBEV = New Unit Contribution For price cut: For fixed cost increase: For price cut and fixed cost increase:
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This document was uploaded on 02/06/2011.

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session111 - Break-even? Definitions Total Profit = Total...

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