Net income of the enterprise from product sales directly depends on constants and variable costs on its release. To define a point of zero profit, it is necessary to find such level of production at which revenue is equal to the size of these expenses.
Instruction
1. The point of zero profit is called differently a profitability point, this term explains its economic sense more precisely. It is that being in this situation the company does not incur losses, but also does not get profit.
2. If the profit curve on graphics falls below value of a point of profitability, then after a while the enterprise can be ruined if in time measures are not taken. Thus, the corresponding calculations have to be carried out rather quickly objectively to display the level of resilience of the company.
3. It is possible to define a point of zero profit in two ways: in monetary and natural value. In the first case it is represented in financial units, in the second – in pieces (goods or service). Every way means use of the formula: TNP_D = Vp*zpos / (VP - Zper) TNP_N = Zpos / (P - Zper), where: TNP – a point of zero profit; VP – proceeds from sales of products; Zpos both Zper – constants and variable costs on production; P – commodity unit price.
4. Apparently from the given ratios the set of expenses has significant effect on result of economic activity. It is logical as of them there is a prime cost on the basis of which the price is formed. What is expenses and what they are?
5. Constant expenses are called so because their size does not depend directly on production volume. These are the fixed expenses, as a rule, covered with a certain constancy for some period. The monthly rent, depreciation, payment of the serving and support personnel and so forth belong to them.
6. Variable costs grow in proportion to release of goods, i.e. participate directly in production. It is expenses on raw materials, the equipment, the salaries of the main personnel, packing, etc.
7. It is easy to understand that the enterprise will develop the more successfully, than above its situation over a point of zero profit. This distance is called a stock of financial durability and better characterizes possibilities of the company, especially in the conditions of crisis. In such situation it can hold on some time at the expense of the developed reserve: ZFP_D = (VP – TNP_D) / VP*100%ZFP_n = (P – TNP_N) / % P*100, where: ZFP_D and ZFP_N – a stock of financial durability in monetary and physical units.