Professional Documents
Culture Documents
TABLE OF CONTENTS
1 INTRODUCTION 2
INDUSTRIAL PROFILE&COMPANY 6
2 PROFILE
RESERCH METHODOLOGY 9
3
DATA ANALIYSIS&INTERPRETATION 16
4
SUGGESTIONS&SUMMARY 18
5
BIBLOGRAPHY 21
6
2
CHAPTER-1
INTRODUCTION
3
INTRODUCTION
The Break- even point (BEP) in economics.is the point at which
total cost and total revenue are equal .there is no net loss or
gain and one has broken even through opportunity cost have
been paid and capital has received the risk adjusted expected
return .in short all cost that must be paid are paid and there is
neither profit or loss .the main purpose of break-even point is
to determine the minimum output that must be exceeded for a
business to profit .it also is a rough indicator of the earnings
impact of a marketing activity
4
DEFINITION
According to Charles T Homages,” thebreak-even point of
activity sales volume is where total revenue and total expenses
are equal .it is the point of zero profit &zero loss
According to Metz, Curry and Frank, “a break-even analysis
indicates at what level, cost and revenue are in equilibrium.”
5
CHAPTER 2
INDUSTRIAL PROFILE
&
COMPANY PROFILE
7
INDUSTRIAL PROFILE
The textile industry is one of the largest world with a massive raw material and
textile manufacturing base. Our economy is largely dependent on the textiles
Manufacturing and trade in addition to other major industries. about 27% of the
foreign exchange earing are on account of export of export of textile and clothing
alone. the textile and clothing sectorcontributors about 14% to then industrial
production and 3 % to the gross domestic product of the country. Around 8 % of
the total excise revenue collection is contributed by the textile industry. So much
so, the textiles industry account for as large as 21 % of the total employment
generated in the economy. Around 35 million people are directly employed in the
textile manufacturing activities indirect employment including the man power
engaged in agricultural based raw-material production like cotton and related
trade and handing could be stated to be around another 60 million
COMPANY PROFILE
8
One of the branches of lamiya silks in edappal was established on 9th AUG 2005. it
was inaugurated by Malayalam actress meera Jasmin. there are more than
50 employees working in this shop. Most of their customers are from
Malappuram, Thrissur, Ernakulum, Calicut and Palakkad district of Kerala states.
9
CHAPTER 3
RESEARCH METHODOLOGY
10
RESEARCH
Research means a search for facts- answers to questions and solutions
to problems. I t is a purposive investigation. A research can be defined
as a scientific and systematic search for pertinent information on
specified topic.
RESEARCH METHODOLOGY
This study is conducted by conducting a personal interview with the
office manager.
CHAPTER 4
DATA
ANALISIS&INTERPRATATION
12
1. For the break- even point to be counted, all costs need to be clearly
categorized in fixed and variable costs, which may not be possible every
time.
2. For the multiple- product or joint- product operations, it is difficult
to apply the break- even analysis. on needs to ascertain the costs to
each product> hence the analysis is applicable only for single product.
3. The computation of break- even point is based on the historical
information. If this information is not relevant, the analysis cannot be
applied usefully.
14
INTERPRETATION
Thus the break-even point of this firm is when it sales for Rs.
4137916This is the point where the total cost equals total revenue.
When the sales reaches 4137916, the total cost incurred equals the
total revenue earned, there is neither profit nor loss. Any amount of
sales higher than the breakeven sales is profitable to the firm whereas
any amount of sales lesser than the break-even sales is a loss.
16
MARGIN OF SAFETY
CHAPTER 5
SUGGESTIONS
&
SUMMARY
19
SUGGESTIONS
Reduce fixed costs. Even if the firm end up paying a higher per-unit
price by outsourcing a fixed cost, you may still be better off. With
variable costs you only pay for what you use, so you have profitability
protection if your sales lag.
20
CONCLUSION
CHAPTER 6
BIBLIOGRAPHY
22
BIBLIOGRAPHY
www.google.com
www.investopedia.com
https://en.wikipedia.org/wiki/Break_even_analysis
www.accountingformanagement.org/margin-of-safety-
mos-calculator