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  • 1.  Part 2, Section C; Interpretation of CVP Analysis

    Posted 01-16-2019 07:35 PM
    ​Hello There,

    Could some one explain the meaning of " Effect of income is opposite to the effect of Break Even Point"?
    Thanks for your help.


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    Hari Gopal Yugandhar Gokavarapu
    Novi MI
    United States
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  • 2.  RE: Part 2, Section C; Interpretation of CVP Analysis

    Posted 01-17-2019 06:18 AM
    Hi,

    1. Income / Profit = Net Revenue - Total Cost
    2. BEP = Net Revenue = Total Cost
    3. Therefore, Whenever the Income (quantity/amount) increases BEP reduces (quantity/amount)

    hope this would be helpful to understand

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    Ramachandran Ponnagu
    Director/Manager
    Tiruvallur
    India
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