Costing

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 February 2012 Sir,
We are in Retail Ready made Cloths Showroom, We are Opened New Branch on 01.01.2012, how should we calculate BEP for this Showroom

This store Jan'12 Sales is Rs.1 Crore.

Fixed Exps: 15 Lacs

Varaiable Exps: 5 Lacs

How can we caliculate BEP & In How many years to reach BEP.

Please give the Brief Explanation for Retail Store. (With Example)

devenderkomirishetty@yahoo.com

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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19 February 2012 BEP Sales = Fixed cost/contribution

please provide this data only for particular month of Jan-12 or total year. because your contribution

1 Cr less 5 Lac = 95 Lac

then BEP= 15 LAC/95 lac x 100= Rs.1578947

this is correct provided your figures are only for the month of Jan-12

CA Punit

CA Punit (Expert)
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19 February 2012 also.. are the variable exps of 5 lacs include your cost of goods sold?
if so, the BEP calculated as above is correct,
if not then do include them in variable exps and compute as above

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Querist : Anonymous

Querist : Anonymous (Querist)

20 February 2012 Sir,

Please give me Example (Retail store) to calculate the Break Even Point for Retail stores

devenderkomirishetty@yahoo.com

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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20 February 2012 Hi Devender

BEP formula is same for all the industry, such as Fixed cost/contribution x 100

You need to know what is your variable cost for the products and other indirect variable cost and also need to identify you fixed cost, when these things are calculated, just apply this formula and get the BEP