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...
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Пікірлер: 95

  • @refiloemakhetha6500
    @refiloemakhetha65004 жыл бұрын

    You have explained this so easily, thank you.

  • @daphneymaluleke8475

    @daphneymaluleke8475

    3 жыл бұрын

    Thank you for your elaboration. It is understandable

  • @kavumamaureen2805

    @kavumamaureen2805

    2 жыл бұрын

    Thanks so much this has been wonderful

  • @arthurkaunda8946
    @arthurkaunda8946 Жыл бұрын

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

  • @emmanuelmwansa3890

    @emmanuelmwansa3890

    9 ай бұрын

    😂😂yepp

  • @thewealthymind
    @thewealthymind Жыл бұрын

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

  • @avhonahombedzi9753
    @avhonahombedzi9753 Жыл бұрын

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

  • @altheahudson3763
    @altheahudson37633 жыл бұрын

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

  • @sheena6325
    @sheena63252 жыл бұрын

    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...

  • @evansasuma2563
    @evansasuma2563 Жыл бұрын

    You've made it so easy. Thank you!

  • @renaymokoena5907
    @renaymokoena59073 жыл бұрын

    This was very helpful. Thank you!

  • @sterlingphoenix71
    @sterlingphoenix712 жыл бұрын

    Outstanding job. Excellent example, very well explained.

  • @newtonkangogo8837
    @newtonkangogo88373 жыл бұрын

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

  • @bulelanindilele5016
    @bulelanindilele50162 жыл бұрын

    Thanks a million Professor you're good on this 🙏

  • @bias1145
    @bias11453 жыл бұрын

    Very good explanation! Thank you!

  • @ahmadaljassmi4908
    @ahmadaljassmi490811 ай бұрын

    That was incredibly understandable, keep up.

  • @leratomatlala9716
    @leratomatlala97162 жыл бұрын

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

  • @memorymwango9448
    @memorymwango94482 жыл бұрын

    Thank you so much, you've made life easier

  • @melissapetersen1977
    @melissapetersen19779 ай бұрын

    very simply put!!! thanks a million

  • @lawrencemukupe8392
    @lawrencemukupe8392Ай бұрын

    You made it clear for me. Thank you.

  • @palesaradebe244
    @palesaradebe2442 жыл бұрын

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

  • @renonaidoo3315
    @renonaidoo3315 Жыл бұрын

    Absolutely amazing , Thank you.

  • @isatoumceesay9991
    @isatoumceesay99912 жыл бұрын

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

  • @user-yc9uv5dp3q
    @user-yc9uv5dp3q11 ай бұрын

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

  • @theclawar9251
    @theclawar92513 жыл бұрын

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

  • @salamaalkh8467
    @salamaalkh8467 Жыл бұрын

    Very well explained, thank you.

  • @bradleythirumurthi
    @bradleythirumurthi Жыл бұрын

    Awesome video!

  • @buyile_beverly
    @buyile_beverly2 жыл бұрын

    Beautiful 🥺🙌Thank you

  • @thapelomodise8217
    @thapelomodise8217 Жыл бұрын

    You are the best👏👏👏

  • @nqobienqoh2670
    @nqobienqoh26704 жыл бұрын

    Thank you its really make sense

  • @mathewmzee8963
    @mathewmzee8963 Жыл бұрын

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

  • @GG-rs5sm
    @GG-rs5sm Жыл бұрын

    Amazing video, thank you.

  • @rhinorheins
    @rhinorheins4 жыл бұрын

    Thank you for this .

  • @nqubekokhumalo6529
    @nqubekokhumalo65292 жыл бұрын

    You have just made it clear

  • @user-kp2wz9cz6e
    @user-kp2wz9cz6e11 ай бұрын

    Thank you so much Sir be blessed

  • @lino6137
    @lino6137 Жыл бұрын

    bro is the goat

  • @preciousmbwezo4588
    @preciousmbwezo4588 Жыл бұрын

    Well explained, thank you

  • @saviopinto5016
    @saviopinto5016 Жыл бұрын

    Well done and well explained . thank you

  • @user-jd9rv3bb8r
    @user-jd9rv3bb8r4 ай бұрын

    Thanks for this

  • @nkocycindy2455
    @nkocycindy2455 Жыл бұрын

    thank you so much that was so helpful 💯

  • @Uniquesnippet
    @Uniquesnippet Жыл бұрын

    Excellent lesson

  • @SamuelChorokee
    @SamuelChorokee Жыл бұрын

    Great Work,I appreciate

  • @saidosman1527
    @saidosman1527 Жыл бұрын

    Thank you so much. Jazakallah

  • @missmmmoimana1261
    @missmmmoimana12613 жыл бұрын

    Thank you so much.🥺❣❣❣

  • @jcmxbiggy
    @jcmxbiggy9 ай бұрын

    Thank you.

  • @abheethsatharasinghe2490
    @abheethsatharasinghe24903 жыл бұрын

    Wow nice explanation ❤️‍🔥

  • @hildahgithara8704
    @hildahgithara87042 жыл бұрын

    Thank you so much 🥰

  • @rynkyjking6953
    @rynkyjking69532 жыл бұрын

    Thank you so much you lifesaver

  • @fitsummengesha8879
    @fitsummengesha8879 Жыл бұрын

    God Bless You!

  • @addisuyimam5049
    @addisuyimam50492 жыл бұрын

    Big respect for our African lecture

  • @inongenoanga3285
    @inongenoanga32852 жыл бұрын

    Thank you so much ☺️☺️☺️

  • @VibesWithSolape
    @VibesWithSolape3 жыл бұрын

    Amazing thank you

  • @amandadube2641
    @amandadube26412 жыл бұрын

    Thank you so much

  • @zaneledumisilenkambule2568
    @zaneledumisilenkambule25682 жыл бұрын

    Thank you🙏

  • @mohamedbaituray8933
    @mohamedbaituray8933 Жыл бұрын

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

  • @ramakrishnajinaga2868
    @ramakrishnajinaga28683 жыл бұрын

    Tq so much sir👍

  • @isaacdube7650
    @isaacdube76504 жыл бұрын

    Thanks my G

  • @moniquealfred9816
    @moniquealfred98163 жыл бұрын

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

  • @veronicagida2397
    @veronicagida23973 жыл бұрын

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

  • @gracechiwondo5760
    @gracechiwondo57603 жыл бұрын

    Thanks

  • @hellozoom6737
    @hellozoom67374 жыл бұрын

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

  • @rohanthakur9641
    @rohanthakur96417 ай бұрын

    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

  • @hailemariammamo9826
    @hailemariammamo98263 жыл бұрын

    perfect

  • @eugeneokiri6617
    @eugeneokiri66172 жыл бұрын

    what better way to understand this.

  • @ayandazinhle9807
    @ayandazinhle980710 ай бұрын

    Dankooo❤🎉🎉

  • @Ellartheprincess
    @Ellartheprincess2 жыл бұрын

    The best

  • @meganrasekgela7123
    @meganrasekgela71233 жыл бұрын

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

  • @rodrigocandido4772
    @rodrigocandido47723 жыл бұрын

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

  • @washingtoneofula4060
    @washingtoneofula4060 Жыл бұрын

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

  • @nkhensanimabunda8970
    @nkhensanimabunda89703 жыл бұрын

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

  • @rahmaruun5512
    @rahmaruun55123 жыл бұрын

    Can u do Account liability and specialized Accounting

  • @onyinyeonyibor6309
    @onyinyeonyibor63092 жыл бұрын

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

  • @youngkey1836

    @youngkey1836

    Жыл бұрын

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

  • @thebeloved25
    @thebeloved25 Жыл бұрын

    Pls can you explain how you got 1.1 and 1.2?

  • @nunulala8177
    @nunulala8177 Жыл бұрын

    Where can we get more practice exercises?

  • @amanvaish2943
    @amanvaish29433 жыл бұрын

    Is CVP relationship or break even analysis is same

  • @innocentiajoja1430
    @innocentiajoja14309 ай бұрын

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

  • @swapnamaysen8937
    @swapnamaysen89373 жыл бұрын

    Its okay

  • @lawrenceokere9574
    @lawrenceokere95743 жыл бұрын

    How did you get 1.1

  • @matshepopenelope7048
    @matshepopenelope70482 жыл бұрын

    how did you get 1.1???

  • @KM_SA
    @KM_SA3 жыл бұрын

    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

  • @linusite6348
    @linusite63483 жыл бұрын

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

  • @rochellelily4842
    @rochellelily48423 жыл бұрын

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

  • @Counttuts

    @Counttuts

    3 жыл бұрын

    Which one specifically?

  • @rochellelily4842

    @rochellelily4842

    3 жыл бұрын

    The contribution per unit calculation

  • @thapelodangala3864
    @thapelodangala38642 ай бұрын

    Love the accent ❤

  • @cintaba1
    @cintaba14 жыл бұрын

    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

    @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

    @cintaba1

    4 жыл бұрын

    @@Counttuts I thought as much. Thanks.

  • @cintaba1

    @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

    @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.

  • @jeffkamushila3910
    @jeffkamushila39107 ай бұрын

    Am lost where the 1.1 is coming from

  • @ntcuong01ct1
    @ntcuong01ct13 жыл бұрын

    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

    @lefikasegobye3675

    3 жыл бұрын

    I don't understand what you mean