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

[@claughlin]

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

[@Zohirul-Jewel]

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

[@MuhammetKenan]

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]

Thanks Kenan!

[@UncleGrummpy]

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

[@skywrecker]

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]

Did you pass?

[@skywrecker]

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

[@Mvang884]

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!

[@unlimitedgnar1955]

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

[@AboutSisters]

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!

[@quynhanhnguyenphuc2499]

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!

[@swapnamaysen8937]

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

[@AlrightokayAO]

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

[@Edspira]

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

[@BattlefieldHeroes-kw8ne]

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 :)

[@arpitrohilla285]

Hey man thanks.. my book just randomly drops in new information without making sense but you make sense perfectly. I was scratching my head earlier as to why they abruptly started to call a random thing "contribution", without explaining contribution to what, for ex. Cheers.

[@tkbraber]

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

[@Edspira]

😀

[@enderzebak2863]

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

[@Edspira]

Thanks, you too!

[@Leafgirl99]

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

[@courtneyr9580]

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

[@Edspira]

Thanks for watching, and good luck on the CPA!

[@yoshinegus4019]

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

[@Vendzor]

Needed this laugh before my exam today 😂😂

[@isratjahantabassum4577]

thanks for making complex things easy

[@jimmylam311]

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

[@anasaaf7753]

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

[@extrapickles5427]

pay this man a university professor salary

[@Edspira]

😀

[@archivebynima]

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?

[@tonymontana5753]

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

[@enriquebn4853]

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

[@phuonguyen2424]

YOU SAVED MY LIFE SIR GOD BLESS YOU

[@linhskookie_1607]

Thank you so much! It's extremely helpful

[@goo724]

This video was extremely helpful. Thank you.

[@joanl.7543]

This was nicely done; thanks for the video.

[@jeremydavis6815]

Making me understand man, U THE BEST

[@rob8482]

These videos are fantastic. Great instruction, thx!

[@alsawidyad9982]

u literally have everything im looking for

[@mohibullahamini1723]

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

[@bruinlover09]

Dude, you are a life saver

[@hannayazdi3607]

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]

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 🥰

[@mise2434]

Keep up the good work!

[@Edspira]

Thanks!

[@Halexstrasza]

Edspira I love you 😭💖💖

[@ameegenius5608]

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

[@guilhermeal2170]

Man, you're the best

[@Edspira]

Thank you!

[@sepehrabdoli489]

you're a hero a sir thank you

[@OurGodIsLove]

Thank you for sharing the lesson.

[@aidanwhite8670]

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?

[@dennisdeodath7272]

Yes u can

[@12InchesUnBuffed]

ye

[@HonestFranklin]

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.

[@tristlamb]

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?

[@cryptoranty1286]

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?

[@acecard1013]

great tutorials

[@Edspira]

Thank you!

[@x1j1]

Huge thanks to you!

[@ExpatJoel]

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]

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

[@sdiptanil]

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 ?

[@dantheman4011]

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

[@kamalpaudel4542]

great explanation , please add capital budgeting videos also

[@timinottawa]

Thank you. I found this so helpful!

[@nowledge12]

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

[@heatherhoward1]

Very good video, helped me a lot!

[@sueyouzersif574]

It was really helpful thanks

[@TaseTea]

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

[@loco036]

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.

[@brandonfollis4491]

huge help . appreciate it

[@joshuagray6360]

Thanks so much.

[@zehramsrl7650]

Thank you so much for being perfect!

[@sanfran224]

very good. I like it

[@salihtayalla3400]

Well done

[@regularbloke7410]

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

[@edwardkay288]

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.

[@HonestFranklin]

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

[@bushranahvi2263]

ur the best! thankyou

[@hasibulhasan-pp2xr]

A big thank you

[@racelkayquebral7516]

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

[@calumharris7574]

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

[@veegava9882]

Thank you

[@slaveseth]

great stuff

[@Edspira]

Thanks!

[@gees3156]

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

[@jarizminrivera5999]

Thank you! :)

[@itzurboii6618]

3 words I LOVE U

[@Edspira]

😍

[@ntcuong01ct1]

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.

[@enkhsanaa123]

the dude sounds like Chef John LOL

[@Edspira]

I get that a lot!

[@EddieRuiz-l5c]

thanks

[@jayynostalgia]

Thank you !

[@miachacon6298]

Thank you!

[@Edspira]

You're welcome!