When will Paneeyam Break Even?
| Case Code: FINC192 Case Length: 4 Pages Period: - Pub Date: 2022 Teaching Note: Available |
Price: Rs.250 Organization: Paneeyam Private Limited Industry: Food & Beverage Countries: India Themes: CVP Analysis, Break Even Point |
Abstract Case Intro 1 Case Intro 2 Excerpts
Abstract
The case study discusses the cost structure of Paneeyam Private Limited (Paneeyam), a beverage start-up and a loss-making company. The case study also discusses the challenges faced by the management of Paneeyam. The challenge before Paneeyam is to break even as well as achieve the targeted profit which the company had promised to its investors. The case study also provides various cost-related information about Paneeyam.
The case study helps to understand the impact of costs and volume of sales on the profitability of a company. It also helps to understand the volume of sales required to achieve breakeven and profitability, given the cost structure of the company.
Issues
The case is structured to achieve the following teaching objectives:
- To understand the relationship between costs and profit with changes in volume.
- To understand the significance of Break-Even Analysis and the computation of BEP.
- To understand the effect of changes in underlying factors on the BEP and Margin of Safety.
Contents
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Introduction
Paneeyam’s Business
Paneeyam’s Costs
Deliberations at The Meeting Held on April 15, 2022
Exhibits
Keywords
CVP Analysis; Break-Even Analysis; Margin of Safety; Contribution; Marginal Cost; Variable Cost; CVP Chart; Break-Even Chart
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