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Hiphiphoray

Q & A on Break Even Volume

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Arrrr.....calling all business guru.

 

Can help see if this break even volume answer is correct bor.

 

Gum sia many many. ^_^

Q14 Q & A.pdf

Edited by Hiphiphoray
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Alamak.....didn't read the last part properly.

 

so its 153.65 x 12 = 1843.8 units

 

That's all right ? [confused]

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My business brain is off on Sunday, will come back tomorrow if no one provide the answer [laugh][laugh]

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Alamak.....didn't read the last part properly.

 

so its 153.65 x 12 = 1843.8 units

 

That's all right ? [confused]

Sunday, no mood to work this out.

Let you know tomorrow.

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Alamak.....didn't read the last part properly.

 

so its 153.65 x 12 = 1843.8 units

 

That's all right ? [confused]

how to sell 0.8 unit?

 

always round up

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My business brain is off on Sunday, will come back tomorrow if no one provide the answer [laugh] [laugh]

 

Yup..... replace by horny brain during weekends when there are no BPL matches ... [sly]

 

:D:D

Edited by Picnic06
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Never took econs, and I know nuts about bizniz. But I'm getting 1844.

 

N = ceil([350000*12*0.3 + 80000*12]/[1400+200-0.05*1400-180-8.5*8-78]) = 1844units.

 

ceil() is the ceiling function.

Edited by Turboflat4
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I'm also getting 1844 units.

 

Interesting fact is, dedicate workforce salary of $80,000 per month.

What will be the size of the company in terms of number of employees?

I got 11.

Shareholders X 3 ($10500)

Salesman X 2 ($2600)

Sales Manager X 1 ($3200)

CS X 2 ($2000)

GM X 1 ($7000)

Accounts (AR/AP) X 2 ($2800).

 

And my breakeven point is 1844 / 52 weeks = Require to produce 35.5 units per week.

35.5 units per week = 7.1 units per day.

7.1units per day = 7 workers.

 

Then my 7 workers are paid $1428 each per month, without CPF, without any incentive.

 

No wonder we need cheap labours.

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Alamak.....didn't read the last part properly.

 

so its 153.65 x 12 = 1843.8 units

 

That's all right ? [confused]

Nope, your Fixed cost is wrong, rental you calculated per mth.

Use per year, then you FC will be much higher.

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Salary also monthly

So need to use 185,000 x 12 as FC.

 

So the answer is..

 

Same leh 1844 units

Edited by Atonchia
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Realistically, it depends if you are reporting to the shareholders or board of directors or setting target for your management team.

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Arrrr.....calling all business guru.

 

Can help see if this break even volume answer is correct bor.

 

Gum sia many many. ^_^

 

Based on formula, break even analysis is fixed cost / (price-variable costs). Your answer seems ok. let us know if otherwise.

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