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Chapter 29 - Coggle Diagram
Chapter 29
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Break Even Analysis
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Advantages
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Guidelines to management on BEP, safety margins, profit and loss levels at different outputs
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Break Even Analysis
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Equation
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500,000 / 100 = 5000 units
Direct Cost
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Raw materials, ingredients
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Marginal cost
Additional cost with producing one more output, extra variable cost
extra screws, paint, wood to make one more table