Breakeven | Contribution | A-Level, IB & BTEC Business
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- เผยแพร่เมื่อ 21 ก.ค. 2024
- In this video on breakeven analysis, Jim explained the key concept of contribution and how it can be used to calculate the breakeven output.
#alevelbusiness #tutor2ubusiness
VIDEO TIMESTAMPS
00:00 - Introduction to breakeven analysis and the concept of contribution
00:31 - Illustrating the concept of contribution using the example of selling hoverboards
01:43 - Exploring contribution in more detail and how it covers fixed costs and leads to profit
02:19 - Calculation of total contribution and understanding its relationship with fixed costs
03:59 - Explanation of contribution per unit and its significance in calculating break-even level
05:16 - Example calculation of contribution per unit and total contribution using product X
07:00 - Determining profit based on contribution and fixed costs
07:33 - Explanation of break-even output and its formula using fixed costs and contribution per unit
08:41 - Calculation of break-even output using the given example
09:13 - Recap of the concepts of total contribution, contribution per unit, and break-even output
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You just saved me from probably failing an exam. I wouldn't understand when my lecturer was explaining this to us, but you made it very simple to understand. Liked and subscribed!
it's 2022 and I have just found this video very helpful. Thanks a lot, you have clarified not so easy argument
Wait, that's it ? It's so easy..
I didn't understand this in class today. Thank you,sir.
May God bless you and your family.
Pleasure - glad you found the video helpful! Breakeven analuysis is a tough topic to understand
Thank you, it "clicked" now and I understand the concept. This is taught in such a confusing way and no one is explaining that "Contribution" is essentially contributing the money you make to cover fixed costs before considering profit.
Exactly! that's just what contribution is! The money you make that goes towards (contributes) covering your fixed costs.
Wow! I’ve struggled with most of the concepts in the text book! These videos have really helped me understand things I feared I never would!! Thank you!
God bless you. I have a better understanding of this for my forthcoming exam.
Thank you soooooo much!! I have been struggling with this chapter!! It's so difficult
Contribution = SP-VC. BEP(units)=fc divide by C BEP(sales revenue) = bep(units)x SP. MOS= SU - BE. Profit = MOSxC. Profit if X =MOSxC. Profit/loss =Limit -BEPxC
U made it very simple n crisp ... was struggling to understand u made it so easy thank u
My pleasure 😊
Refreshing and clear explanation.
you saved my semester,god bless ,Thanks a lot sir
i liked the very start especially. Of course , my instinctive answer was if ur selling price is greater than your cost then yes - you make a profit. So it was a bit of a slap in the face when you came back and said NO. And then explained that the difference was actually contributing towards paying off the fixed costs and only once that is achieved can you then enjoy the profit.
wow. it was a great explanation. thanks a lot 🤗
Hello, in regard to fixed costs, when it comes to calculating the breakeven point of a new product being added to an existing range of products, do I take into consideration only the new fixed costs that will arise as a result of adding the new product to the range? And should I take their annual value? Thanks
Now I understood why is contribution per unit constant,
Thank you sir
Awsomely explained thanx alot ....
Great lesson clear explanation. Thank you.
Thank you so much ☺️ why my tutors can’t explain it this way is beyond me , you have saved me today , sir ! Thank you
Happy to help
SUPER useful THANK YOU!!!!
Very simply and clearly explained.
Finally, I understand!
Thank you very much for the headache-relieving explanation.
Thank you a lot! May I ask, why is it fixed costs and not total costs?
Good effort.
Extremely helpful! Thank you
You're welcome!
Thanks a lot.
Thank you, this is very helpful !!
So glad!
contribution per unit also works out the same if you do contribution divided by units sold, hence why its called contribution per unit
Thank you so much really helped me!
I’ve got a business test on finance tomorrow, will let you know how I get on!
Best of luck!
@@tutor2u-official I got 61/70 (87%) which is an A*!
Thank you so much again 🙏
Thanks very much sir
Very clear concise information well explained.
Glad you think so!
Thank you so much this helped to clear the concepts alott ✨
Glad it was helpful!
Thank you :)
Really useful video, ty!
Glad it was helpful!
so useful. big ups.
Glad you think so!
where do you find the amount of units being sold?
This was really heplful.Sir would you be kind enough to differentiate between the fixed and variable costs of a business. Thanks
thx boss
Waa chaptr yara adag mhdsanid
Really clear video! Helped a lot. Do you have a playlist of all the formulas you need to know for Unit 3 Personal and business finance? Or maybe a page on your website that has all the U3 formulas in one place?
I'm sure we could put that together - leave it with me
@@tutor2u-official WOW!! Thank you so so much!
@@tutor2u-official If you could let me know when that is put together that would be amazing! Thanks again.
@@tutor2u-official let me know when you make it please
You do make 50 profit. It would be better explained by adding the fixed costs and then ask how much profit you get after selling the hoverboard.
Thanks
Nice
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.
Thankyouuu so much
You're welcome!
👍
Doesn’t making a profit and covering fixed costs depend on the variable costs so although a business needs contribution if it’s variable costs are too high to the point we’re it has no money left then it won’t even reach the contribution stage
Thank you so much😭😭😭
You're welcome!
Hello! Can this also be applied to sale of services? Thanks in advance.
Yes, absolutely
Hi sir why is fixed cost £40000 ?
this for edexcel right?
all exam boards
dr saif janan and Dr. Haitham talaat وهنالك سماء اعلى من الفضاء توجد بها الجنه و Amer muner
.
who the fucc says less