BEP Calculation Possible with Multiple Products?


 
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BEP Calculation Possible with Multiple Products?
THEODORE BABU, Student (MBA), South Africa, Member
If you have multiple products with hardly any variable cost, would BEP calculation still be an option?
I have 40 lines and do not know how many products will sell. I only have a fixed expense being the space hired monthly and electricity usage. Would electricity be a variable cost since the usage depends on how long the machine is running. Do I then allocate this cost over all the products equally. Please advise....Sign up
 

 
Electricity Cost Allocation
Day Pierre DESAULT, Consultant , France, Member
If its cost is 15%-20% of your total turn-over, you might allocate 17.5% of this sum over all the productions equally.
You might also allocate it...Sign up
 

 
Cost Types in Break Even Analysis
ALBAN ONWULIRI, Student (University), Nigeria, Member
Break Even Analysis is a Management tool in decision making and helps management to classify costs as FIXED or VARIABLE:
- Fixed costs are those ...Sign up
 

 















 


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