Essential knowledge of CMA: breakeven point

Cost/quantity/profit analysis is an important chapter in Part2 of CMA exam, and break-even analysis is a typical topic. Today, let's learn how to calculate the break-even point with deep space network.

Breakeven analysis of CMA knowledge points

1. Definition: breakeven point: refers to the sales volume that can make the total revenue equal to the total cost, that is, the sales volume when the income before interest and tax is zero.

2. Significance: breakeven analysis enables managers to understand the business volume that must be achieved in order to avoid losses.

3. Formula

(1) unit marginal contribution = unit price _ unit variable cost

(2) marginal contribution = unit marginal contribution × sales volume

(3) Marginal contribution rate = Marginal contribution/sales revenue

(4) Operating profit = marginal contribution _ fixed cost

(5) Guaranteed sales volume = fixed cost/unit marginal contribution

(6) Guaranteed sales = fixed cost/marginal contribution rate

Calculation example of breakeven point 1 Calculation of breakeven point of single product

Classic example of break-even analysis 1

An enterprise produces a product, the monthly fixed cost is 1 1,000 yuan, the unit variable cost is 6 yuan, and the price is 10 yuan. How many products can it sell at the breakeven point?

Answer: guaranteed amount = fixed cost/unit marginal contribution = 1 000/( 10-6) = 250 (pieces).

A company produces thermos bottles, with total sales of 80,000 yuan last year, total variable cost of 20,000 yuan and total fixed cost of 30,000 yuan. What is the break-even sales revenue level of Company A? ()

A.3,000 yuan, B.4,000 yuan, C.5,000 yuan and D.8,000 yuan.

Answer: b

Analysis: Marginal contribution rate = (80 000-20 000)/80 000 = 75% breakeven point sales = 30 000/75% = 40 000 yuan.

Classic example of break-even analysis II

The electronics company is developing a new product-current protector. The cost information about the product is as follows: unit cost direct material $3.25 direct labor $4.00 distribution $0.75 The company will absorb new fixed costs of $65,438+020,000 with this new product. Another $20,000 originally absorbed by other products was also allocated to this new product. If the price is 14 dollars each. What is the break-even point (quantity) of this current protector?

8500 b . 20000 c . 10000d . 23300

Answer: b

Analysis: breakeven point (sales volume) =120000/(14-3.25-4-0.75) = 20000 (pieces)