Tag Archives | Profits

Advantages of Break Even Analysis | Profits | Economics

Beyond linearity, other simplifying assumption limits the advantages of break-even analysis; actual costs incurred(fixed and variable) are substi­tuted for opportunity costs; the business environment is taken as static, that is factors other than volume affecting revenues and costs, such as demand and technology, are assumed to be insignificant; still more im­portantly, risk and uncertainly are ignored. However, some simple as­sumptions [...]

By |2017-01-13T05:58:21+05:30January 13, 2017|Firm|Comments Off on Advantages of Break Even Analysis | Profits | Economics

Break-Even Analysis’s Chart | Profits | Economics

In this article we will discuss about break-even analysis’s chart. The break-even point represents the volume of sales at which revenues equal expenses — that is, at which profit is zero. The break-even volume is calculated at by dividing fixed cost (costs that do not vary with output) by the contribution margin per unit, that is, selling price minus variable [...]

By |2017-01-13T05:58:21+05:30January 13, 2017|Break-Even Analysis|Comments Off on Break-Even Analysis’s Chart | Profits | Economics

Different between Gross Profit and Net Profit | Economics

The upcoming discussion will update you about the difference between gross profit and net profit. (a) Profit is commonly taken to mean the difference between total revenue and total cost. It is the reward for and monetary incentive to the successful conduct of business. Profit is different from other factor incomes. Rent arises to land as a factor; wages arise [...]

By |2017-01-13T05:55:20+05:30January 13, 2017|Profit|Comments Off on Different between Gross Profit and Net Profit | Economics
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