1. Muhammed Samsuzzaman E mail: zaman. seoti2504@gmail
Muhammed Samsuzzaman E mail: Senior Teacher Kakoli High School School E mail: Web address:

2. Subject:Business Enterpreunership

3. Let’s watch the picture

5. What is your evaluation?
Make profit

6. Today’s Lesson Profit Planning Analysis

7. If a seller sold a product at Tk. 50 If its cost is Tk. 40
Find out profit?
Tk. 10

8. Profit = Sales price – Cost price Oppositely Loss = Cost – sales

9. 1. Fixed cost 2. Variable cost
Rent
Material
Salary
Labor
Insurance
Factory OH

10. Contribution Margin per unitSP
Sales price per unit VC
Variable cost per unit CM
Contribution Margin per unit

11. Lenovo company sold a product at Tk. 20 , its variable Cost per unit Tk. 12 and Fixed cost Total Tk. 20,000

12. Contribution Margin per unitSP
Sales price per unit
Tk. 20 VC
Variable cost per unit
Tk. 12 CM
Contribution Margin per unit
Tk. 8 CM SP VC = -

13. So we find that Tk. 8 is earn from one unit. It is not profit
So we find that Tk. 8 is earn from one unit. It is not profit. Carefully think that we deduct only variable cost. Fixed cost totally denied. But we have to deduct fixed cost to find out actual profit . Fixed cost is Tk. 20,000 . How many units need to sale to cover this fixed cost Tk. 20,000?

14. Contribution margin per unit
Tk 8 earn from 1 unit
Tk 20,000 earn from __________ unit
Yes!
2500 unit
Tk. 20,000
Fixed cost
Tk. 8
Contribution margin per unit

15. Contribution margin per unit
Fixed cost
Break even point =
Contribution margin per unit

16. Income statement for 2500 unit
Sales (2500X20) = 50,000
Less , Variable cost(2500 X 12) = 30,000
Contribution Margin = 20,000
Less , Fixed Cost = 20,000
Profit = 0
So, we found that Break Even Point (BEP) is a point where no profit and no loss.

17. 60,000
50,000
40,000
30,000
20,000
10,000
Taka
Variable cost Line
Sales Line FC
Unit

18. What is Break even point and Break even sales?
Sales per unit Tk. 60 Variable per unit Tk. 40 , Fixed Cost Tk. 80,000 .
What Is CM?
What is Break even point and Break even sales?
If the company wants to make profit Tk. 20,000. How many unit must be sold?
Evaluation

19. CM = SALES PER UNIT – VARIABLE COST PER UNIT
= 60 – 40 = 20
BEP = FC / CM per unit = 80,000 / 20 = 4000 unit.
Break even sales = 4000 unit X 60 = 2,40,000.
Target sale = ( FC + Desire Profit)/ CM per unit
= (80, ,000) / 20 = 7,000 unit

20. Home work
Optical company sold a unit at Tk. 100 , its variable Cost per unit Tk. 80 and Fixed cost Total Tk. 1,20, i) Find out BEP ? Ii) If The Company wants to make a Profit Tk. 60,000 how many unit must be sold? Iii) Draw a break even chart.

21. Thanks To All .

22. Sales Tk. 50
Cost Tk. 40
Profit
Tk. 10 ?