Measuring Improvement in Break Even Point

Break-even Analysis
Knowledge Center

 

Next Topic

Break-even Analysis > Best Practices > Measuring Improvement in Break Even Point

Measuring Improvement in Break Even Point
Pete
If one compares the break even point over 2 different time periods for the same entity, but on different cost structures (variable and fixed), and different sales, how do you measure improvement in the break even point? (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in


  BEP
shoakat
  I think BEP should only relate to fixed costs as the idea is once they have been recovered, each additional unit of output is generating extra income. Different sales figures are irrelevant in terms of variable costs however with each additional unit of output would reduce fixed cost per unit.

  Break Even Point
Alpin McGregor, freeelance, United Kingdom, Member
  Break even point is calculated at a moment in time. It does not cover several periods. If you recalculated break even point at some other time then the improvement will be indicated by a lower break even point. This will have occurred because of one or a combination of the following changes. Selling price has been increased, unit variable cost has decreased, fixed costs have decreased. If break even point is higher (ie deteriated because you need to sell more to break even) then the opposite of the above will have occurred. I think what you are really looking for is the answer supplied by sensitivity analysis.

   
Special Interest Group Leader

Are you an expert in this field? Sign up for free


Break-even Analysis
Summary
Forum
Cost of Idle HQ Staff Included in Break-even Point Calculation?
🔥Break-even Point as Maximum Revenue
How to Account for Interest in Break-even Point Calculation?
Best Practices
🥇Time after Break-even Point?
🥈How to Calculate BEP Without Price Given?
🥉Break Even Point formula for a service industry
Break Even Analysis and Cost Benefit Analysis
Breakeven Point Calculation
Further Limitations of Break Even Analysis
Not enough revenues...?
Time for break even..
Break-even Point Example
Break Even Point Calculation of a Bank
Breakeven Formula for Services
Contribution in Break-even Point
Measuring Improvement in Break Even Point
BEP Calculation Possible with Multiple Products?
How to Deal with Owners Withdrawals in Break-even Analysis?
BEP Useful for New / Start-up Businesses
Could There Be 2 or even more Break Even Points?
Break-even Point Analysis when Material Prices Fluctuate


Break-even Analysis
Knowledge Center

 

Next Topic



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.5 - Last updated: 5-8-2020. All names of their owners.