break even analysis

Revision question on how to calculate break-even point and margin of safety.

Bonne Bia limited is a newly formed company in the catering business founded by Kate and Paul Johnson. Kate and Paul have considerable experience in the food industry and saw an opportunity to establish a food/beverage business to service the tourist market during the four months from May to August. The business will be located in Wexford and permission has … Read the rest

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Meaning of Cost-Volume-Profit Analysis

Cost-volume-profit (CVP) analysis focuses on the way cost and profit change when volume changes. It is, broadly speaking, that system of analysis which determines the probable profit at any level of activity. This technique is generally used to analyze the incremental effect of volume on costs, revenues, and profits. At what volume of operations are costs and revenues equal? What … Read the rest