Cost Volume Profit Analysis (CVP): calculating the Break Even Point

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  • เผยแพร่เมื่อ 17 ธ.ค. 2024

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  • @MuhammetKenan
    @MuhammetKenan 6 ปีที่แล้ว +53

    I don't know how many times you saved my hide with these videos. You explain everything perfectly, short and to the point. God bless you, sir.

    • @Edspira
      @Edspira  6 ปีที่แล้ว +3

      Thanks Kenan!

    • @UncleGrummpy
      @UncleGrummpy 6 ปีที่แล้ว +3

      I don't how you do it but you have a gift of breaking things down so people understand managerial accounting.

  • @claughlin
    @claughlin 7 ปีที่แล้ว +120

    Thank you. You've described in clearly in 10 minutes what took 3 classes at my university.

    • @Zohirul-Jewel
      @Zohirul-Jewel 7 ปีที่แล้ว +1

      What university? I'm asking because I'm learning this in college.

  • @Mvang884
    @Mvang884 ปีที่แล้ว +3

    I appreciate this so much! Just understanding the basics or simplicity of the calculations helps so much. Sometimes just reading words on a page can be difficult for me, so seeing an example being explained helps so much! Thank you!

  • @skywrecker
    @skywrecker 5 ปีที่แล้ว +10

    dude seriously thank you, my professor never provides examples and never answers my questions. You are the reason im gonna pass my university class.

    • @Skitlless
      @Skitlless ปีที่แล้ว

      Did you pass?

    • @skywrecker
      @skywrecker ปีที่แล้ว

      @@Skitlless i graduated and got my degree so i sure hope i passed!

  • @quynhanhnguyenphuc2499
    @quynhanhnguyenphuc2499 หลายเดือนก่อน

    Your video is like so easy to understand that this video help me to understand what I trying to understand for a whole day in just 7 minutes. Again, thank you so much for your video!

  • @AboutSisters
    @AboutSisters 7 ปีที่แล้ว +9

    Hello there! Just to highly thank you about your tutorials. You provide very high-quality ones, and they helped me a lot for my last exams. Thank you for sharing your knowledge with us, and thank you for your professionalism and your great teaching!

  • @unlimitedgnar1955
    @unlimitedgnar1955 4 ปีที่แล้ว +1

    This is absolutely absurd how good u are at explaining this. It takes my university professor like two or 3 1.5hr classes to explain this is the most over complicated confusing way possible when I could just come here and learn it in 5min

  • @AlrightokayAO
    @AlrightokayAO 6 ปีที่แล้ว +7

    If only I watched this before my test...
    Thanks for the explanation.

    • @Edspira
      @Edspira  6 ปีที่แล้ว

      No problem. Hopefully you can redeem yourself on the final :)

  • @BattlefieldHeroes-kw8ne
    @BattlefieldHeroes-kw8ne 4 ปีที่แล้ว +1

    very clean and easy presentation, straight to point.. my accounts mam literally blown the hell out of me to get this into my mind and yet she failed.....thumsup to you :)

  • @isratjahantabassum4577
    @isratjahantabassum4577 4 ปีที่แล้ว +1

    thanks for making complex things easy

  • @jimmylam311
    @jimmylam311 6 ปีที่แล้ว +1

    Thank you for all your videos, I always use your videos for studying.

  • @courtneyr9580
    @courtneyr9580 7 ปีที่แล้ว +2

    Thanks so much!! These videos have helped me SO much through my Core 2 CPA module.

    • @Edspira
      @Edspira  7 ปีที่แล้ว

      Thanks for watching, and good luck on the CPA!

  • @enderzebak2863
    @enderzebak2863 4 ปีที่แล้ว +4

    You are a life saver sir, thank you so muchhh for explaining to simple and clear, i hope you have good life sirrr!!!!!

    • @Edspira
      @Edspira  4 ปีที่แล้ว

      Thanks, you too!

  • @tkbraber
    @tkbraber 2 ปีที่แล้ว +2

    This 7-minute video summarized a whole lesson in my budgeting and forecasting class, thank you!

    • @Edspira
      @Edspira  2 ปีที่แล้ว

      😀

  • @phuonguyen2424
    @phuonguyen2424 4 ปีที่แล้ว

    YOU SAVED MY LIFE SIR GOD BLESS YOU

  • @yoshinegus4019
    @yoshinegus4019 9 ปีที่แล้ว +69

    If you are running a sub shop, do not hire anyone named "jared", or you will never break even!

    • @Vendzor
      @Vendzor ปีที่แล้ว +1

      Needed this laugh before my exam today 😂😂

  • @anasaaf7753
    @anasaaf7753 7 ปีที่แล้ว

    Man u've no idea how much is that so helpful 2 me .Thx a alot

  • @jeremydavis6815
    @jeremydavis6815 10 หลายเดือนก่อน

    Making me understand man, U THE BEST

  • @goo724
    @goo724 5 ปีที่แล้ว +2

    This video was extremely helpful. Thank you.

  • @tonymontana5753
    @tonymontana5753 5 ปีที่แล้ว +1

    thanks a lot, i understood this lesson. now will finish off my assignment. cheers

  • @enriquebn4853
    @enriquebn4853 4 ปีที่แล้ว

    Thank you so much. you deserve more views and likes.

  • @Leafgirl99
    @Leafgirl99 3 ปีที่แล้ว

    Honestly, I'm learning more from your vides then I did from paying an online instructor $400 this semester

  • @swapnamaysen8937
    @swapnamaysen8937 3 ปีที่แล้ว +1

    I think youtube is the best institution....no need for paying in school or colleges

  • @alsawidyad9982
    @alsawidyad9982 3 ปีที่แล้ว

    u literally have everything im looking for

  • @archivebynima
    @archivebynima ปีที่แล้ว +2

    A brief and informative video! Also, for calculating the break-even point (sales revenue), can’t we just multiply the break-even unit by selling price per unit instead?

  • @joanl.7543
    @joanl.7543 4 ปีที่แล้ว +1

    This was nicely done; thanks for the video.

  • @rob8482
    @rob8482 8 ปีที่แล้ว +1

    These videos are fantastic. Great instruction, thx!

  • @linhskookie_1607
    @linhskookie_1607 5 หลายเดือนก่อน

    Thank you so much! It's extremely helpful

  • @bruinlover09
    @bruinlover09 3 ปีที่แล้ว

    Dude, you are a life saver

  • @ameegenius5608
    @ameegenius5608 6 ปีที่แล้ว

    Thank you thank you thank you my assignment is done with your video! Clear as crystal!!!!!!

  • @sepehrabdoli489
    @sepehrabdoli489 2 ปีที่แล้ว

    you're a hero a sir thank you

  • @Halexstrasza
    @Halexstrasza 7 ปีที่แล้ว

    Edspira I love you 😭💖💖

  • @x1j1
    @x1j1 5 ปีที่แล้ว +1

    Huge thanks to you!

  • @guilhermeal2170
    @guilhermeal2170 5 ปีที่แล้ว +1

    Man, you're the best

    • @Edspira
      @Edspira  5 ปีที่แล้ว

      Thank you!

  • @OurGodIsLove
    @OurGodIsLove 3 ปีที่แล้ว

    Thank you for sharing the lesson.

  • @mise2434
    @mise2434 6 ปีที่แล้ว +1

    Keep up the good work!

    • @Edspira
      @Edspira  6 ปีที่แล้ว +1

      Thanks!

  • @acecard1013
    @acecard1013 8 ปีที่แล้ว +6

    great tutorials

    • @Edspira
      @Edspira  8 ปีที่แล้ว

      Thank you!

  • @kamalpaudel4542
    @kamalpaudel4542 8 ปีที่แล้ว +1

    great explanation , please add capital budgeting videos also

  • @sueyouzersif574
    @sueyouzersif574 4 ปีที่แล้ว

    It was really helpful thanks

  • @salihtayalla3400
    @salihtayalla3400 2 ปีที่แล้ว

    Well done

  • @timinottawa
    @timinottawa 7 ปีที่แล้ว

    Thank you. I found this so helpful!

  • @mohibullahamini1723
    @mohibullahamini1723 6 วันที่ผ่านมา

    we can also easily calculate the Break even point (Sales) just by multiplying the Break even point unit into the selling the price.

  • @aidanwhite8670
    @aidanwhite8670 7 ปีที่แล้ว +2

    For the break-even point in sales $, could you just multiply the break-even point * selling price? or was this just a coincidence on this example?

  • @cryptoranty1286
    @cryptoranty1286 5 ปีที่แล้ว

    So the outcome of the break even point in units. (10000 here) times the price of the product (5 here) is the break even point in sales? Or is it just a coincidence in this example?

  • @tristlamb
    @tristlamb 2 ปีที่แล้ว

    If you have a decimal for the breakeven point, eg. 81.36, do you round up or down? That is, is it 81? Or 82?

  • @joshuagray6360
    @joshuagray6360 10 ปีที่แล้ว +3

    Thanks so much.

  • @heatherhoward1
    @heatherhoward1 9 ปีที่แล้ว

    Very good video, helped me a lot!

  • @zehramsrl7650
    @zehramsrl7650 4 ปีที่แล้ว

    Thank you so much for being perfect!

  • @veegava9882
    @veegava9882 4 ปีที่แล้ว

    Thank you

  • @sdiptanil
    @sdiptanil 7 ปีที่แล้ว

    Hence, under which case one should take (BEP) by sales & under which case one should take (BEP) by unit ? As the outcomes are significantly different, I guess there must be some rationale before we select one particular formula, right ?

  • @nowledge12
    @nowledge12 6 ปีที่แล้ว

    sir could you please add more advanced problem on decision making for CVP

  • @brandonfollis4491
    @brandonfollis4491 5 ปีที่แล้ว

    huge help . appreciate it

  • @extrapickles5427
    @extrapickles5427 2 ปีที่แล้ว +2

    pay this man a university professor salary

    • @Edspira
      @Edspira  2 ปีที่แล้ว

      😀

  • @hasibulhasan-pp2xr
    @hasibulhasan-pp2xr 5 ปีที่แล้ว

    A big thank you

  • @sanfran224
    @sanfran224 9 ปีที่แล้ว +1

    very good. I like it

  • @hannayazdi3607
    @hannayazdi3607 3 ปีที่แล้ว +1

    There is one thing I don't understand: In my textbook it says that CM Ratio = CM/Total Sales, and in the context of this video it is CM/Selling Price. Is there something I am missing?

    • @uwish5356
      @uwish5356 3 ปีที่แล้ว

      i saw online that CM Ratio is either
      1) CM ÷ Total Sales
      2) CM per unit ÷ Selling price per unit
      3) Change of CM ÷ Change of Sales
      hoped that helped you 🥰

  • @ExpatJoel
    @ExpatJoel 5 ปีที่แล้ว +1

    i thought the contribution margin ratio was (total revenue - variable costs)/ total revenue. In the video you have it as CM per unit / price per unit

    • @Edspira
      @Edspira  5 ปีที่แล้ว

      In this video, I'm calculating the contribution margin per unit (which is different than the contribution margin). Great question!

  • @bushranahvi2263
    @bushranahvi2263 8 ปีที่แล้ว

    ur the best! thankyou

  • @HonestFranklin
    @HonestFranklin ปีที่แล้ว

    재무, 세무회계보다 원가관리를 하려는 이유는 급여, 전표, 납세는 오랫동안 해왔었고 별도로 공부하면서도 알고 있어서 다른 일 하고 싶었다. 원가는 매출원가에 직접 영향을 주고 절감해야하는 원가는 얼마이고 목표이익을 얼마나 거래처와 협의로 가져가느냐에 따라 영업이익도 좌지우지 되므로 중요한 일이라 생각한다. 중요한 일을 하고 싶어서 지원했고 종합원가계산이나 정상개별원가계산 배부법을 어떻게 더 빠르게 풀어나갈지 가치변환방식에 어떤변화를 줘야하는지도 생각하고 있다.

  • @itzurboii6618
    @itzurboii6618 3 ปีที่แล้ว +1

    3 words I LOVE U

    • @Edspira
      @Edspira  3 ปีที่แล้ว

      😍

  • @slaveseth
    @slaveseth 9 ปีที่แล้ว +1

    great stuff

    • @Edspira
      @Edspira  9 ปีที่แล้ว +1

      Thanks!

  • @dantheman4011
    @dantheman4011 2 ปีที่แล้ว

    My professor actually directed us to these videos. I suppose paying for that class was a waste of money. #The End Of College

  • @jarizminrivera5999
    @jarizminrivera5999 9 ปีที่แล้ว +1

    Thank you! :)

  • @EddieRuiz-l5c
    @EddieRuiz-l5c 5 ปีที่แล้ว

    thanks

  • @regularbloke7410
    @regularbloke7410 5 ปีที่แล้ว

    you said that breakeven point covers fixed costs. how do you cover variable costs ?

    • @edwardkay288
      @edwardkay288 5 ปีที่แล้ว +1

      He should have clarified that this formula for break-even points is used to account for variable costs per unit.
      If he just needed to cover fixed costs ($20,000), his shop would only need to sell 4,000 subs ($5*4,000=$20,000). The problem with that logic is each sub has an additional expense attached. That is why he needed the contribution margin. Therefore, he subtracted the selling price ($5/sub) from his variable costs per sub ($3/sub) to get his $2/sub contribution margin.
      One quick double-check of the numbers is to test that his cost margin (per unit) and cost margin ratio are saying the same thing. Because 10,000 subs at $5 is equal to $50,000 in sales and his cost margin ratio was $50,000, these numbers check out.

  • @TaseTea
    @TaseTea 6 ปีที่แล้ว

    Another way to find BEP in sales is multiply the BEP in units by the sales price.

  • @racelkayquebral7516
    @racelkayquebral7516 9 ปีที่แล้ว

    The Breakeven point for sales. FC/(1-(CM/P)). Is that wrong? I'm confused

    • @calumharris7574
      @calumharris7574 9 ปีที่แล้ว +1

      Racel Kay Quebral I think if you take out the 1 it will be correct. FC/(CM/P)

  • @loco036
    @loco036 5 ปีที่แล้ว

    There’s another way to calculate breakeven. Sales price x # units- variable costs x # of units- fix costs= 0. You just fit stuff in and solve the equation.

  • @gees3156
    @gees3156 5 ปีที่แล้ว

    What the !! Is this what i wasted my time on! You made it very easy!!

  • @enkhsanaa123
    @enkhsanaa123 6 ปีที่แล้ว +2

    the dude sounds like Chef John LOL

    • @Edspira
      @Edspira  6 ปีที่แล้ว

      I get that a lot!

  • @HonestFranklin
    @HonestFranklin ปีที่แล้ว

    3차원 공간에는 모든게 원자로 구성되며 주변에있는 물건들도 제조가 되있다면 원가와 이익으로 구성되어 있다

  • @ntcuong01ct1
    @ntcuong01ct1 4 ปีที่แล้ว

    Dear Friends,
    I want to confirm:
    If a company has passed the break-even point, why should we do variable costs minimums and maximum fixed costs then the profits will increase more?. Thank you.

  • @jayynostalgia
    @jayynostalgia 3 ปีที่แล้ว

    Thank you !

  • @miachacon6298
    @miachacon6298 3 ปีที่แล้ว +1

    Thank you!

    • @Edspira
      @Edspira  3 ปีที่แล้ว

      You're welcome!