Question

In: Operations Management

hello I need a good report with 6-7 pages about (Break-even Analysis for a single project)...

hello

I need a good report with 6-7 pages about
(Break-even Analysis for a single project)

its better for me if its not handwritting cause i need it online on word ..

anyway thanks ❤️

Solutions

Expert Solution

Answer : Breakeven analysis is performed to see the worth of a variable or parameter of a project or various that makes 2 parts equal, for instance, the sales volumethat can equate revenues and prices.
•A breakeven study is performed for 2 variouss todetermine once either alternative is equally acceptable,for example, the replacement worth of the defender in ar placement study that produces the competition associate equallygood selection.
•Breakeven analysis is usually applied in make-or-buy decisionswhen firms and businesses should decideupon the supply for factory-made elements, services ofall types, etc.
Breakeven studies use estimates that ar thought of to be certain;that is, if the calculable values ar expected to vary enough topossibly modification the end result, another breakeven study is necessaryusing totally different estimates.
•This results in the observation that breakeven analysis could be a a part of thelarger efforts ofsensitivity analysis.
•Our target is to target the determination of the breakevenquantity for a choice variable. for instance, the variable is also adesign component to reduce value, or the assembly level required torealize revenues that exceed prices by 100%. This amount, referred to as the breakeven purpose Q BE is decided exploitation relations for revenue andcost at totally different values of the variable Q. the scale of Q could beexpressed in units per annum, proportion of capability, hours permonth, and plenty of different dimensions.
Fixed prices (FC).Includes prices like buildings, insurance, fastened overhead,some minimum level of labor, instrumentation capital recovery, and informationsystems.
•Variable prices (VC).Includes prices like direct labor, materials, indirectcosts, contractors, marketing, advertizement, and warrant.
•The fixed cost component is actually constant for all values of the variable,so it doesn't vary for an outsized vary of operative parameters, such asproduction level or force size. notwithstanding no units ar made, fastened costsare incurred at some strength. Of course, this example cannot last longbefore the plant should pack up to scale back fastened prices.
•Fixed prices are reduced through improved instrumentation, info systemsand force utilization, more cost effective perquisite packages, subcontractingspecific functions, and so on.
•Variable prices modification with production level, force size, and otherparameters. it's typically potential to decrease variable prices through betterproduct style, producing potency, improved quality and safety, andhigher sales volume.Breakeven Analysis Costs.
At a particular however unknown worth Q of the choice variable, the revenue andtotal value relations can run across to spot the breakeven purpose Q BE
If Q> Q
BE
there's a sure profit; however if Q < Q
BE
there's a loss. For linear models of Rand VC, the larger the amount, the larger the profit. Profit is calculated as:
•A relation for the breakeven purpose is also derived once revenue and total costare linear functions of amount Q by setting the relations for R and TC adequate each other, indicating a profit of zero.where r = revenue per unitv = variable value per unit
•The breakeven graph is a very important management tool as a result of it's straightforward tounderstand and will be utilized in higher cognitive process and analysis during a selection of ways.


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