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Break-even analysis of paper industry
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Break-even analysis of paper industry

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Break - even Analysis:
The term Break-even Analysis
refers to a system of determination
of the level of activity where total
cost equals the total selling price. It
implies the system of analysis that
determines the probable profit at any
level of output. The relationship between
cost of production, volume of
output, quantum of profit and sales
value is established by break-even
analysis. This analysis is also known
as cost -volume-profit (CVP) analysis.
It is an important medium
through which one can have an insight
into effects of profitability due
to variations in cost and sales.

Break-Even Analysis of Unit A :
Break-even analysis of A is
made after considering the fixed and
variable expenses. On the basis of a
7-year period, average expenses are
computed to arrive at the contribution
and profit. The data relating to
break-even has been presented in
Table 4.

Cost Analysis of B
The cost sheets of unit 8 for a
seven-year period from 1993-94 to
1999-2000 are shown in Table 5. A
perusal of the table brings forth several
interesting points. The raw materials
consumed in the mill include
rice straw, jute waste, waste paper,
and wood pulp.
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