Ccot - 823 Words

From the 1800’s to present day, the Middle East has undergone many changes and continuities causing formation of their national identity, main factors that contributed were social aspects on society, government structure, and the strong religious roots they possess. The majority of changes occurred through the society aspects with the treatment of women and the discovery of oil. In Middle Eastern history women have had limited rights and have always been unequal to men. Women have always remained very conservative; being sheltered from other men not being able to go in public being covered from head to toe. The discovery of oil has also created many opportunities for the Middle East giving them a national identity and increasing economy.†¦show more content†¦Faithful Islamics today still strive to complete the five pillars; Believe that Allah is the one and only God, pray five times a day, give alms, and fast at Ramadan, and make a pilgrimage to mecca. Since The Midd le East continues to have a strong religious background ever since Muhammad’s teachings. In the Middle East, each country has it’s own form of government. These forms of governments have been consistently changing throughout time. Throughout all the revolutions and overthrows, the national identity of the Middle East has slowly changed, some parts more than others. Over many years, overthrows in countries such as Egypt and Libya have led to a more democratic government. However, many other countries such as Iran and Iraq have remained more oppressive. The Middle East is still changing to this day. For example, Egypt recently overthrew their president Hosni Mubarak. There are also many protests currently going on in Libya. Throughout Middle Eastern, beginning in the 1800’s many changes and continuities have occurred and shaped what there national identity is in present day. 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Breakeven Analysis Free Essays

BREAK EVEN ANALYSIS Break-even is the point at which a product or service stops costing money to produce and sell, and starts generating a profit for your business. This means sales have reached sufficient volume to cover the variable and fixed costs of producing and distributing your product. [Type the document subtitle] KOMAL BHILARE ROLL NO: 85 2013 DEFINITION Break Even is: †¢the sales point at which the Company neither  makes profit nor suffers loss, or   Ã¢â‚¬ ¢sales level where fixed cost are fully absorbed by or   †¢the level where contribution margin equals the fixed cost. We will write a custom essay sample on Breakeven Analysis or any similar topic only for you Order Now Breakeven analysis provides data for †¢Ã‚  profit planning †¢Ã‚  policy formulating and †¢decision making Break-even analysis may be based on: †¢historical data, †¢past operations, or †¢future sales and costs, Depending on management’s need and desire. †¢The break even analyses technique is used in various  business decision making areas, as this help in knowing the minimum desired level to be achieved to avoid loss situation. †¢The Breakeven analysis is mostly used at the time of  investing in new project and introducing new products. The organizer of this workshop must have seen Break  even for this workshop. USE OF BREAK EVENANALYSES ?  Hospital or Hotel management would like to know sales  point in terms of number of beds/ rooms, to recover fixed cost to reach at a breakeven point. ?The school owner would be interested in knowing minimum number of students to be admitted to reach at  breakeven ?New branch of bank would ne ed to know minimum deposits from customer ?On introduction of new products certain huge sales  promotional expenses are planned in order to achieve  planned sales. The management while deciding about approving expenditures would be interested to see cost / benefit analyses or minimum expected sales (break even) to be achieved to recover these expenses (disregarding the very ambitious sales budgets submitted by the sales and marketing team) FORMULA A) Breakeven point of output = (fixed cost) / (contribution per unit) Where, Contribution=selling cost – variable cost Fixed cost= Contribution -profit B) Breakeven point of Sales = 1. Fixed price x SP per unit Contribution per unit 2. Fixed Cost x Total Sales Total Contribution BREAK EVEN GRAPH Uses of Breakeven Chart A breakeven chart can be used to show the effect of changes in any of the following profit factors: †¢ Volume of sales †¢ Variable expenses †¢ Fixed expenses †¢ Selling price PROFIT VOLUME RATIO (P/V RATIO) The ratio of contribution to sales is P/V ratio or C/S ratio. It is the contribution per rupee of sales and since the fixed cost remains constant in short term period, P/V ratio will also measure the rate of change of profit due to change in volume of sales. The P/V ratio may be expressed as follows: P/V ratio = Sales – Marginal cost of sales = Contribution Sales Sales = Changes in contribution = Change in profit Changes in sales Change in sales A fundamental property of marginal costing system is that P/V ratio remains constant at different levels of activity. A change in fixed cost does not affect P/V ratio. The concept of P/V ratio helps in determining the following: †¢ Breakeven point Profit at any volume of sales †¢ Sales volume required to earn a desired quantum of profit †¢ Profitability of products †¢ Processes or departments the contribution can be increased by increasing the sales price or by reduction of variable costs. MARGINAL COST A marginal cost is another term for a variable cost. The term ‘marginal cost’ is usually applied to the variable cost of a unit of product or service, whereas the term ‘variable cost’ is more commonly applied to resource costs, such as the cost of materials and labour hours. Marginal costing is a form of management accounting based on the distinction between: a. the marginal costs of making selling goods or services, and b. fixed costs, which should be the same for a given period of time, regardless of the level of activity in the period. Suppose that a firm makes and sells a single product that has a marginal cost of ? 5 per unit and that sells for ? 9 per unit. For every additional unit of the product that is made and sold, the firm will incur an extra cost of ? 5 and receive income of ? 9. The net gain will be ? 4 per  additional unit. This net gain per unit, the difference between the sales price per unit and the marginal cost per unit, is called contribution. Contribution is a term meaning ‘making a contribution towards covering fixed costs and making a profit’. Before a firm can make a profit in any period, it must first of all cover its fixed costs. Breakeven is where total sales revenue for a period just covers fixed costs, leaving neither profit nor loss. For every unit sold in excess of the breakeven point, profit will increase by the amount of the contribution per unit LIMITATIONS OF BREAK EVEN ANALYSIS: It is best suited to the analysis of one product at a time. * It may be difficult to classify a cost as all variable or all fixed; and there may be a tendency to continue to use a break even analysis after the cost and income functions have changed. * Break-even analysis is only a supply side (i. e. costs only) analysis, as it tells you nothing about what sales are actually likely to be for the product at these various prices. * It assumes that fixed costs (FC) are constant. Although this is true in the short run, an increase in the scale of production is likely to cause fixed costs to rise. How to cite Breakeven Analysis, Essay examples