Benefits and Limitations of Break-even Analysis

Business Analytic

Table of Contents
Table of Contents.................................................................................................................................2
INTRODUCTION................................................................................................................................3
Question 1.............................................................................................................................................3
Mathematical Model:...................................................................................................................3
Calculate the profit or loss for BF Ltd:........................................................................................3
Draw a graph with a spreadsheet:................................................................................................4
Question 2.............................................................................................................................................5
Analysis:......................................................................................................................................6
Question 3.............................................................................................................................................7
Determine:...................................................................................................................................7
When company’s target profit for the year is £56000:................................................................7
Break even chart:.........................................................................................................................8
Critically analyse the benefits and limitations of the breakeven model:.....................................8
CONCLUSION..................................................................................................................................11
REFERENCES...................................................................................................................................12

INTRODUCTION
Business Predictive is also an approach used by companies to evaluate historical/past
evidence by leveraging analytical instruments and software in order to generate knowledge to
enhance strategic planning (Evans, 2017). The freezers were observed to be holding smaller than
required by several temperatures and therefore to enable higher consumption. Thus, the cost of
power has decreased without impacting healthy food preservation by rising the temperature.
Company owners may benefit from these experiences and use knowledge to better use their
money. Companies of data based goods consider their information as company asset and aim to
beat the competition. Successful enterprise analytics focus on consistency of the data, skilled
researchers who recognize technologies and market, and operational preparation to use
information to construct perspectives that affect strategic choices. The thesis covers numerous
elements of market research and a thoughtful evaluation of the outcomes across various
functional tasks. Successful enterprise analytics focus on consistency of the data, skilled
researchers who recognize technologies and market, and operational preparation to use
information to construct perspectives that affect strategic choices. The thesis covers numerous
elements of market research and a thoughtful evaluation of the outcomes across various
functional tasks.
Question 1
Mathematical Model:

Calculate the profit or loss for BF Ltd:
Budgeted
annual
output
120000
units
Fixed cost 40000
Variable
costs
0.5
Sales price 1
Units Rate Amounts
Sales 120000 1 120000
Less: Variable
costs
120000 0.5 60000
Contribution [Sales less variable
costs}
60000
Less: Fixed costs 40000
Profit 20000
Draw a graph with a spreadsheet:
Units Rate Year
2021
Year
2022
Year
2023
Year
2024
Year
2025
Year 2026
Sales 120000 1 120000 126000 132300 138915 145860.8 153153.8
Less: Variable
costs
120000 0.5 60000 66000 72600 79860 87846 96630.6
Contribution 60000 60000 59700 59055 58014.75 56523.19
Less: Fixed costs 40000 40000 40000 40000 40000 40000