The Break-Even Point | Corrected Application | Level: Mastery 🥈
🎇Links to access my book🎇
https://tidd.ly/4cgXnmM
https://amzn.to/3VfBOgp
You'll find the essentials for understanding the following chapters:
✔The accounting balance sheet;
✔The functional balance sheet, working capital, net working capital, net cash flow, and ratios, as well as analysis;
✔The income statement;
✔Key performance indicators, ratios, and analysis;
✔Dashboards;
✔Sales forecasts;
✔Inventory management and procurement budgets;
✔Cash flow budgets;
✔Accounting depreciation and loan amortization;
✔Investment projects, with calculation of net working capital and net present value;
✔Full costing;
✔And the break-even point.
The BONUS: You'll find exercises here, and the solutions will be available on your favorite channel 😉
In this video, you'll follow the solution to an exercise on the break-even point. First, you'll allocate costs into variable and fixed costs. This allocation will allow you to create a differential analysis table, which you can use to determine the profit or loss. After creating the differential analysis table, you'll see how to calculate the break-even point, the breakeven rate, the safety margin, and the withdrawal margin. These calculations will allow you to analyze the company's financial situation.
After completing this exercise, you will have grasped the concept of the break-even point.