Determine the B.E.P 2. Determine the profit 3. Margin of safety.
The data provided by a company for the year 2020 – 2021 to carry out Break Even Analysis
and provide them the results, complete analysis and suggestions. The data is as follows:
Building rent 20000 R.O
Every month instalments 30000 R.O
The estimated sales are 750000.0 R.O
Material Cost / unit 15.0 R.O
Production cost / unit 8.0 R. O
Transportation & other Costs / unit (Approx) 4.00 R. O
Maintenance cost / unit 1.5 R. O
Salary of the employees / unit 0.8 R.O
Marketing and advertisement cost / unit 0.7 R. O
Each unit is sold at price 35.0 R. O
Construct the B.E.P chart on a graph sheet and indicate, B.E.P, M.o.S and also indicate the new
B.E.P & M.o.S after the improvement measures has been taken (With different colours). Show the
calculations for the following parameters separately before and after the measures taken.
1. Determine the B.E.P
2. Determine the profit
3. Margin of safety.
Also write your decisions taken to improve the profits of the company and to reduce the B.E.P.
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