Mr Rahul is a production consultant and undertake assignment to improve the work output of
various companies where they want to work upon increasing their effectiveness and efficiency. He is
approached by Creative Solutions Private Limited as they are not able to increase their output.
Mr Rahul notices all movements of workers, operations and activities properly and fixes a standard time
for each activity. He also decide the best method of doing a job and makes every worker follow that
method. Then he goes on to fix the number of workers that the company should have and how many
days would be needed by the company to complete a given order. After implementation of these, Mr
Rahul now get down to studying the rest intervals that should be given to workers so that they regain
their stamina and efficiency.
After 1 year of following this in the next stage Mr Rahul now decided to differentiate between efficient
and inefficient workers by rewarding them at different wage rate based on their output.
In the light of the above answer the following question
1. Identify the concept of management being used by Mr Rahul in the above case.
2. Explain the different elements of the concept identified above, that he has used.
Answers
Answer:
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How to Calculate the Break-Even Point
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To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.
Here’s What We’ll Cover:
What Is the Break-Even Point?
What Is the Formula for the Break Even Point?
Break-Even Point Examples
What Is the Break-Even Point?
The break-even point is the point where a company’s revenues equals its costs. The calculation for the break-even point can be done one of two ways; one is to determine the amount of units that need to be sold, or the second is the amount of sales, in dollars, that need to happen.
The break-even point allows a company to know when it, or one of its products, will start to be profitable. If a business’s revenue is below the break-even point, then the company is operating at a loss. If it’s above, then it’s operating at a profit.
How to Calculate Break Even Point in Units
H2= “How to Calculate Break Even Point in Units”