Cost Volume Profit (CVP) Analysis | Break-Even Analysis | Explained with Example
In this lesson, we explain what Cost Volume Profit (CVP) Analysis is and go through an example where we calculate the break-even point in units and value, we calculate the margin of safety units and percentage, we calculate the break-even point with target sales, and we calculate the break-even sales with the contribution margin ratio.
Margin of Safety Percentage | Explained with Example: • Margin of Safety Perce...
Margin of Safety Units | Explained with Example: • Margin of Safety Units...
Markup vs Margin Explained with Examples: • Markup vs Margin | Exp...
Simple Formula for Calculating Percentages | Want over Have Formula: • Simple Formula for Cal...
Check it out.
Check out other straightforward examples on our channel.
We also offer one-on-one tutorials at reasonable rates.
Connect with us:
Email: info@counttuts.com
Our Website: Counttuts.com
Our Facebook Page: / counttuts
Support our Efforts: paypal.me/counttuts
Пікірлер: 95
You have explained this so easily, thank you.
@daphneymaluleke8475
3 жыл бұрын
Thank you for your elaboration. It is understandable
@kavumamaureen2805
2 жыл бұрын
Thanks so much this has been wonderful
These things always seems simple here but when in the exams ,eesh whole different ball game :).Thanks,a very excellent tut
@emmanuelmwansa3890
9 ай бұрын
😂😂yepp
I’ve been finding it so difficult to understand CVP but you just made is simple and brief. Thanks a million 😊
This presentation deserves millions of likes🤗, thank you so much💯
You have made my life much easier where this topic is concerned...thanks a lot!!!
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...
You've made it so easy. Thank you!
This was very helpful. Thank you!
Outstanding job. Excellent example, very well explained.
you made me like this topic, simple and very clear explanation. Thank you
Thanks a million Professor you're good on this 🙏
Very good explanation! Thank you!
That was incredibly understandable, keep up.
Always valuable spending time on this channel, thank you ...
Thank you so much, you've made life easier
very simply put!!! thanks a million
You made it clear for me. Thank you.
awesome explanation!!! easy to understand and very helpful. thank you
Absolutely amazing , Thank you.
Maa shaa Allah 🥰🥰🥰I really understand your explanation very well 🥰🥰
I have been struggling to understand my lecturer .... Your explanations are very clear and easy to understand. Thanks
Thanks so much for this video. It makes me understand more
Very well explained, thank you.
Awesome video!
Beautiful 🥺🙌Thank you
You are the best👏👏👏
Thank you its really make sense
thank you so much for your knowledge.. well explained, this video has been a great help in my exams
Amazing video, thank you.
Thank you for this .
You have just made it clear
Thank you so much Sir be blessed
bro is the goat
Well explained, thank you
Well done and well explained . thank you
Thanks for this
thank you so much that was so helpful 💯
Excellent lesson
Great Work,I appreciate
Thank you so much. Jazakallah
Thank you so much.🥺❣❣❣
Thank you.
Wow nice explanation ❤️🔥
Thank you so much 🥰
Thank you so much you lifesaver
God Bless You!
Big respect for our African lecture
Thank you so much ☺️☺️☺️
Amazing thank you
Thank you so much
Thank you🙏
Thanks for this explicit explanation . kindly send me an example using the graph with the various cost lines
Tq so much sir👍
Thanks my G
This really helped thanks, got a test today on this :/
Thanks. You are helping my Professor explain it clearer😊 I hope you can also cover other topics
Thanks
Thanks lot I understand coz of this clip from university not at all😅
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
perfect
what better way to understand this.
Dankooo❤🎉🎉
The best
Thank you so much sir, your explanation made it so easy to understand CVP .
Amazing video, but is there no video that explains cost volume with multiple products
💯🎉🎊🎊🎊🇰🇪🇰🇪🇰🇪I have learnt three weeks work in less than one hour clip . 👏🥂😎.
For a beginning like me? This makes sense thanks a stax
Can u do Account liability and specialized Accounting
Thank you for this very explanatory video..... How did you get "1.1" when calculating sales price per unit
@youngkey1836
Жыл бұрын
Increase of something by 10℅ that means it is 100%+10%=110%
Pls can you explain how you got 1.1 and 1.2?
Where can we get more practice exercises?
Is CVP relationship or break even analysis is same
When they ask for the aggregate break even for 3 products, how are you supposed to calculate it?
Its okay
How did you get 1.1
how did you get 1.1???
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
sorry , not minus but divided by.. 4:27
Please where did you get this 1.1 in calculation of sales price per unit
@Counttuts
3 жыл бұрын
Which one specifically?
@rochellelily4842
3 жыл бұрын
The contribution per unit calculation
Love the accent ❤
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
4 жыл бұрын
Profit on sale is not a variable cost, the problem may be something you are missing or the way the question was set.
@cintaba1
4 жыл бұрын
@@Counttuts I thought as much. Thanks.
@cintaba1
4 жыл бұрын
@@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.
@ntuthukondlela8224
3 жыл бұрын
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.
Am lost where the 1.1 is coming from
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
3 жыл бұрын
I don't understand what you mean