Re: ::: vuaskari.com ::: AOA ALL.CS101 ASSIGNMENT NO.5 IDEA SOLUTION AND MTH302 GDB REQUIRED.JAZAKALLAH

GreY_FerrY Wrote:  MTH302 GDB IDEA GUIDLINE 
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Break Even Analysis
Break Even Analysis refers to the calculation to determine how much product a company 
must sell in order to get break even point (The point at which no profit is made and no 
losses are incurred) on that product.
Application in Business:
1- it make clear weather or not revenue from a product or service can cover e relevant costs of 
production of that product or service.
2-it helps in making business dicisions like setting prices.
3-it helps in preparing comparative bids
4-it helps managment for making apply for loans

Cost-Volume-Profit Analysis
Cost-volume-profit (CVP) analysis expands the use of information provided by breakeven 
analysis. It deals with how profits and costs change, with a change in volum
Application in Business:
1-With the help of this Businessman can look at the effects on profits by changes in such factors as variable costs, 
fixed costs, selling prices, volume.
2-it helps in studying the relationships of costs, sales, and net 
income
3-With the help of CVP analysis we can findout followings;
(1) What sales volume is required to break even? 
(2) What sales volume is necessary in order to earn a desired 
(target) profit?
(3) What profit can be expected on a given sales volume? 
(4) How would changes in selling price, variable costs, fixed costs, and output affect profits?

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