Holy shiz. You destroyed this!!! My Teacher made me feel so baffled when he was teaching it. You just taught me this in 11 mins and 24 seconds compared to the 1hour and 30 mins my teacher tried to teach it in... LEGEND
Thank you so much , I scored 65/80 on my business mock and the only question I had wrong was break even . This will be really helpful towards my exam in 2 weeks
Break even takes a little bit of work to get your head around but once you crack it then it can really boost your grades as it is very likely to be on the exam. Well done on scoring 65/80 and good luck in the real exams!
Thank you a lot, I need this for my GCSE business exam in a few weeks and your video has really simplified what we were told in class. The margin for instance, always confused me as I never understood why it matters about safety as long as you are profitable - but now I understand it is the amount you can lose before making loss. Thank you again!
wow it blows my mind how all the helpful positive charismatic MASLOWS HIERARCHY MOTIVATING teachers are the ones in videos on youtube and then my actual physical teachers are useless.... IM SO GRATEFUL thank you for your time making these videos, its so appreciated :)
Thank you for taking the time to leave such a generous comment - though I'm sure your teachers are fantastic really. Well done on mastering break even diagrams!
This is a very useful video. However, since it does not give pieces of information about things like the usefulness of BEA or what are the limitations, which is one of the key factors when it comes to the chain of analysis or exams. For that reason, I would like to ask if you or anyone could help me to understand some pros and cons of BEA to a business. Thank you so much!
Thanks a hell of a lot, realy helpfull video! Would be nice if you could make one on how to construct such a chart from an invented example, it would be great.
Usually, variable costs do't appear on break even charts as they are part of the total cost line. At different levels of output, the variable costs can be seen as the difference between the fixed costs and the total costs.
I understand what the graph means. But I don’t understand how for example for the total costs how do u know where to place the line and the sales revenue why is it in that line in that place in particular
Because the lines are plotted onto the diagram based on a table of data that would display what the sales revenue is at different levels of output or what the total costs are at different levels of output. So whoever has drawn the diagram has worked out exactly where the lines should be drawn by plotting each one based on the data they have calculated about the business. Hope this helps.
It's often based on estimated costs and prices, so the figures used to calculate break even may not be the figures the business encounters in reality. Also, it is less useful for businesses that sell a range of products at various different prices. They need to calculate an average price of the products they sell to calculate their break even level of output, which can be less accurate.
You would need to know the variable cost per unit. You would then multiply this variable cost per unit by a level of output anywhere on the X axis to get the total variable costs at that level of output. Add that total to the fixed costs to get the total costs at that level of output. Draw a line from the start of the fixed cost line above 0 output through the total costs point you have calculated. That would show the total costs line.
They are different concepts. Net profit is expressed in £'s. The margin of safety is expressed in units. It is the number of products/units output could fall by before the business returns to its break even level of output. For example, if a business needs to produce 50 products to break even, but is actually managing to produce 80 products, then they are producing above their break even level of output by 30 units. Consequently, output could drop by 30 units and the business would still be breaking even. Their margin of safety is 30. The profit that they are making if they manage to sell all 80 units that they produce would be expressed in £££££'s and is a different concept.
hello! sorry for disturbing, but may i know if there are any benefits for having smaller or larger margin of safety? if there are, do you mind listing them down for me? thank you so much! your videos are very helpful in helping me understand for my AS Level exam
The larger the margin of safety, the more sales could fall by before the business returns to its break even point. If the margin of safety increases, the advantages would be that the business is more secure, generating more revenue, has output that is even further beyond the break even point and making more profit. If the margin of safety is increasing, then the business may also experiences some of the economies of scale associated with increasing output
1. Suppose Keynes, Inc is considering buying a machine that will generate revenues of $6 million annually for two years and the $2 million in the third year. After three years the machine is worthless. If Keynes, Inc buys the machine, it must make a deposit of $ 2 million today and pay a further $11 million two years from now. Keynes, Inc has a minimum acceptable rate of return policy on investments set at 5%. a. Using an Excel function, find the breakeven interest rate. Can someone confirm if this answer is 100%?
this is problem or question i need help on, Mary is a second year college student and wants to earn some extra pocket money. She is good with making hamburgers, so she is considering opening up a hamburger stall on weekends at the local flea market near the campus. After investigating, she found the following; She can rent an exclusive site for R300 a day, payable in cash. This site can be rented for 10 hours per day. The existing major competitor in the flea market is selling hamburgers at R15 each. She reckons she will do well if she can sell a better quality double cheese burger at the same price. She further decided to rent a fully equipped trailer, custom made for a hamburger stall with all additional accessories e.g. signboards, gas etc. The rent is R460 per day. She would like to generate a salary of R500 per day plus an additional R240 per day for her little sister that would like to help her and also earn a little money. Mary further found that the ingredients of 1 hamburger add up to exactly R5. She also decided to rent a sing to fit about the trailer for R500 per day. Mary would like know; How many hamburgers must she sell per day to cover her cost? Motivate your answer by; * Completing the table * Drawing all the lines on the graph * calculating the BEP So in the table they gave me this, in columns Hamburgers Fixed cast Cost/unit Selling Price Income Variable cost Total cost 0 50 100 150 200 250 300
Holy shiz. You destroyed this!!! My Teacher made me feel so baffled when he was teaching it. You just taught me this in 11 mins and 24 seconds compared to the 1hour and 30 mins my teacher tried to teach it in... LEGEND
@Cairo Brentley couldnt care less
Crazzyyy know!!! An angel thats what he is
My teacher spent 1 hour and 45 mins just reading the handouts and formulae and I learnt absolutely nothing in that class
You just saved my tuition and I want to hug you to show you how great this lesson is
No hugs necessary! Just glad someone found the video useful. Thanks for taking the time to comment.
thats a little bit fruity
@@azimshaikh7490 no need for the homophobic remark
fruity
@@user-fz9vk4js5l fruit
Thank you, you're helping me through my business mock exam
Thank you, literally a few hours till my exam
One night before my alevels. Why didn't I find this earlier??? You're such an angel
7:20 Margin of safety
Thank you so much , I scored 65/80 on my business mock and the only question I had wrong was break even . This will be really helpful towards my exam in 2 weeks
Break even takes a little bit of work to get your head around but once you crack it then it can really boost your grades as it is very likely to be on the exam. Well done on scoring 65/80 and good luck in the real exams!
+Allan Smith Yup
Alright no need to flex
its been 2 years since your comment so i assume you had your externals, how did you do
So you got 78% well done i got 27 out of 36 so i got 75%
you are an actual legend dude thank you so much you explain so well its actually insane
saving my exams thank you sir 🙏
how do u feel for tuesday?
@@max-gg9qk stressed but in good spirit
@@chillipeppers7285 fr bit worried but hopefully all good. hoping the 25s are good, what topic do u want one on?
Thank you a lot, I need this for my GCSE business exam in a few weeks and your video has really simplified what we were told in class. The margin for instance, always confused me as I never understood why it matters about safety as long as you are profitable - but now I understand it is the amount you can lose before making loss. Thank you again!
I'm glad the video helped. Well done for mastering the margin of safety concept! Good luck with your GCSE exams!
I bloody love this man!!!
There is always one!!. One dislike! not sure what that plonker was seeking. Very good sir , clearly explained.
Very helpful, Wish I had this for my Business A level back years ago
marple college could never teach this so easily in 10 mins.
wow it blows my mind how all the helpful positive charismatic MASLOWS HIERARCHY MOTIVATING teachers are the ones in videos on youtube and then my actual physical teachers are useless.... IM SO GRATEFUL thank you for your time making these videos, its so appreciated :)
Thank you for taking the time to leave such a generous comment - though I'm sure your teachers are fantastic really. Well done on mastering break even diagrams!
THANK YOU SO MUCH!!! this was super helpful
Really pleased it helped. Thanks for the comment.
Excellent - do clear ; well done and thank you
So very good at explaining the concept in such a simple and engaging manner. I have ADHD and was able to not drift off and learn the chart!
Thanks for taking the time to leave feedback. I'm glad you found the video useful. Good luck with your revision!
You are a gift young man
Really simple once you get the concept down. I actually already knew how to do this, but reviewing never hurts.
thanks again as always verry helpful
Thank you, sir! Your videos are quite useful for my business studies exam preparation. Cheers!
understood everything
that's the neatest graph i have ever seen my whole life
Thanks. It took me hours!
thanks for the help but if still wants to be help on the assignment of mine what can i do?
Itwas a great help.Thankyou hope you do a lot of videos like these.😄😄
Well-explained, thanks!
thanks bigga
Thankyou a lot very helpfull
Really useful video 👍
This is a very useful video. However, since it does not give pieces of information about things like the usefulness of BEA or what are the limitations, which is one of the key factors when it comes to the chain of analysis or exams. For that reason, I would like to ask if you or anyone could help me to understand some pros and cons of BEA to a business. Thank you so much!
Thanks a hell of a lot, realy helpfull video! Would be nice if you could make one on how to construct such a chart from an invented example, it would be great.
great video
Thanks a lot sir .
Thank you so much😭😭😭
Your amazing
Is startup expenses included in fixed cost? or Fixed cost is a monthly expenses?
God bless you!
your my hero..
I'm not sure business teachers could ever be considered a hero but I'll take it! Thanks for the comment
A teacher isn't really a hero. Rather is a person who helps you widen your horizon on your potential. Business is mine btw
how can i get hold of sir for more help
Can you help with understanding Variable Costs on the Break Even chart
Usually, variable costs do't appear on break even charts as they are part of the total cost line. At different levels of output, the variable costs can be seen as the difference between the fixed costs and the total costs.
thank you so much sir
You're welcome - I hope the videos were helpful
I understand what the graph means. But I don’t understand how for example for the total costs how do u know where to place the line and the sales revenue why is it in that line in that place in particular
Because the lines are plotted onto the diagram based on a table of data that would display what the sales revenue is at different levels of output or what the total costs are at different levels of output.
So whoever has drawn the diagram has worked out exactly where the lines should be drawn by plotting each one based on the data they have calculated about the business.
Hope this helps.
sir can you tell me the limitation of breakeven analysis
It's often based on estimated costs and prices, so the figures used to calculate break even may not be the figures the business encounters in reality.
Also, it is less useful for businesses that sell a range of products at various different prices. They need to calculate an average price of the products they sell to calculate their break even level of output, which can be less accurate.
Watching this 2 hours before my as level business exam 😮😅
If we had sales revenue and fixed costs on the graphs how would we work out total costs
You would need to know the variable cost per unit.
You would then multiply this variable cost per unit by a level of output anywhere on the X axis to get the total variable costs at that level of output.
Add that total to the fixed costs to get the total costs at that level of output.
Draw a line from the start of the fixed cost line above 0 output through the total costs point you have calculated. That would show the total costs line.
excuse me, sir, could you possibly do a video on 9-12 markers in AQA business a level. Thanks
I've made it! I just need to edit and upload. It'll be live in the next couple of days.
Thanks for watching.
When it asks for Profit at certain point after breakeven but there is not a graph is there an equation they want you to use?
Why dont you need to put a variable cost line on the graph?
Appreciate you g
Can we get a return video
Thanks
Legend 👌🏻👌🏻
You sir are not taking the biz, you are taking students steer clear away from flopping our exams
sir what is called margin of safety?
Any output over and above break-even units(On X-Axis)
Love you 👾
Appreciate it
Is margin of safety is exactly the Net profit, if it is why they don't call it Net profit?
They are different concepts. Net profit is expressed in £'s.
The margin of safety is expressed in units. It is the number of products/units output could fall by before the business returns to its break even level of output.
For example, if a business needs to produce 50 products to break even, but is actually managing to produce 80 products, then they are producing above their break even level of output by 30 units. Consequently, output could drop by 30 units and the business would still be breaking even. Their margin of safety is 30.
The profit that they are making if they manage to sell all 80 units that they produce would be expressed in £££££'s and is a different concept.
@@TakingTheBiz thank you very much for your noteworthy explanation
the 16 dislikes on this video must be people who found it after their exam
Life saver
hello! sorry for disturbing, but may i know if there are any benefits for having smaller or larger margin of safety? if there are, do you mind listing them down for me? thank you so much! your videos are very helpful in helping me understand for my AS Level exam
The larger the margin of safety, the more sales could fall by before the business returns to its break even point.
If the margin of safety increases, the advantages would be that the business is more secure, generating more revenue, has output that is even further beyond the break even point and making more profit. If the margin of safety is increasing, then the business may also experiences some of the economies of scale associated with increasing output
TakingTheBiz Thank you so much! Have a great day!
Chaya.Laxmaiah
LEGEND
Hello! If unit variable costs increase, what would happen to the break even level of output and margin of safety and why?
if you been given a problem or question that you need some help on it
legend
Business sold enough to cover total
Production is break even point-
Business exam in 4 hours lol
God
fucking legend
Ayo whos in mr murrays business class🤣🤣
😘
1. Suppose Keynes, Inc is considering buying a machine that will generate revenues of $6 million annually for two years and the $2 million in the third year. After three years the machine is worthless. If Keynes, Inc buys the machine, it must make a deposit of $ 2 million today and pay a further $11 million two years from now. Keynes, Inc has a minimum acceptable rate of return policy on investments set at 5%.
a. Using an Excel function, find the breakeven interest rate.
Can someone confirm if this answer is 100%?
this is problem or question i need help on, Mary is a second year college student and wants to earn some extra pocket money. She is good with making hamburgers, so she is considering opening up a hamburger stall on weekends at the local flea market near the campus.
After investigating, she found the following; She can rent an exclusive site for R300 a day, payable in cash. This site can be rented for 10 hours per day. The existing major competitor in the flea market is selling hamburgers at R15 each. She reckons she will do well if she can sell a better quality double cheese burger at the same price.
She further decided to rent a fully equipped trailer, custom made for a hamburger stall with all additional accessories e.g. signboards, gas etc. The rent is R460 per day.
She would like to generate a salary of R500 per day plus an additional R240 per day for her little sister that would like to help her and also earn a little money.
Mary further found that the ingredients of 1 hamburger add up to exactly R5. She also decided to rent a sing to fit about the trailer for R500 per day.
Mary would like know; How many hamburgers must she sell per day to cover her cost?
Motivate your answer by;
* Completing the table
* Drawing all the lines on the graph
* calculating the BEP
So in the table they gave me this, in columns
Hamburgers Fixed cast Cost/unit Selling Price Income Variable cost Total cost
0
50
100
150
200
250
300
LEGEND