Cost Volume Profit Analysis

Master of Business

University of Kelaniya

G.M. Mudith Sujeewa

(ACA, M.Sc. (Finance) SJP, B.B.Mgt. (Acc.) Special Degree

BE point

Example

Break-even point = Rs. 30,000

Profit = Rs. 1,500

Fixed Cost = Rs. 6,000

What is the amount of variable Cost ?

BE point

Example

Sales = 4,000 units @ Rs. 10 per unit

BEP = 1,500 units

Fixed Cost = Rs. 3,000

What is the amount of variable Cost ? Profit ?

BE point

Example

Profit earned = Rs. 2,000

Break-even sales = Rs. 40,000

Fixed Cost = Rs. 8,000

What is the actual sales?

BE point

Example

selling price = Rs. 150 per unit

variable cost = Rs. 90 per unit

Fixed Cost = Rs. 600,000

What is the break-even point?

What is the selling price per unit if the BE point is 12,000 units ?