break even analysis and cost of production

Question 1

Cost of Production (CoP)

Answer 1

The “cost of production” is average cost of producing one unit of output.
2. Is the estimation of how much it cost to produce a unit of output
e.g. how much does it cost to produce a kg of paddy, maize, wheat etc. Nu/kg

Question 2

How to find Cost of Production (CoP)

Answer 2

The first step when calculating the cost involved in making a product is to determine the fixed costs. The next step is to determine the variable costs incurred in the production process.

average cost per unit= fixed costs+ variable costs/ total no of items produced

Question 3

Break-even Yield/Point/analysis

Answer 3

1. Your break even analysis helps you determine how many products you need to sell in order to cover all of your business costs and make a profit.
2. It is a price points you need to reach/charge so that you need to hit the break even point than only you can make a profit.

Break even yield= total costs/output price