A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh

Jinnat Ara; Mir Md. Moheuddin; Saddam Hossain; Muhammad Abdus Sattar Titu

doi:doi:10.11648/j.ijebo.20200802.13

| Peer-Reviewed

A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh

Jinnat Ara, Mir Md. Moheuddin, Saddam Hossain, Muhammad Abdus Sattar Titu

Published in International Journal of Economic Behavior and Organization (Volume 8, Issue 2)

Received: 22 May 2020 Accepted: 11 June 2020 Published: 23 June 2020

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Break-even analysis is the analysis of the level of sales at which a company would make zero profit and it assists management in determining the number of products to be produced to attain desired profits, the number of products to be produced at a minimum threshold level, gaining desired profits under different cost and volume relationship. This technique has been applied to focus on how selling prices, the volume of sales, total costs such as variable cost and fixed costs as well as the mix of product sold affects profit. This research study aimed to determine the profitability position of several dairy farms in Bangladesh based on their cost-volume of the production. The study is conducted on two dairy farms named as Subarna Agro-Based Initiative and Nusrat Agro & Dairy Farm in Noakhali district. To obtain the objectives, ten years of financial data are taken from the period of 2009-10 to 2018-19 in the form of primary data. Utilizing these data profit volume ratio (P/V ratio), break-even point (BEP) and margin of safety are calculated for ten years. From the analysis, a P/V ratio from 2009-10 to 2018-19 is gradually raised and also break-even point demonstrates an optimal level considering the level of sales volume in ten years. Besides, the margin of safety helps us to know the risk level of a business. As-a-results, this article will lead to making how much cost to be spent to produce the required number of volumes of products to achieve the desired profit goal.

Published in	International Journal of Economic Behavior and Organization (Volume 8, Issue 2)
DOI	10.11648/j.ijebo.20200802.13
Page(s)	38-43
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Break-Even Analysis, Profit Volume Ratio, Break-Even Point, Margin of Safety

References

[1]	Chandra, Ashish, et al. "Cost of Milk Production and Break Even Analysis of Member and Non Member of Dairy Cooperative Society for Milch Animals (Cow & Buffalo) in District Etawah of UP." Cost of Milk Production and Break Even Analysis of Member and Non Member of Dairy Cooperative Society for Milch Animals (Cow & Buffalo) in District Etawah of UP (June 18, 2014) (2014).
[2]	Sultana, M., Ahmed, J. U., & Shiratake, Y. (2020). Sustainable conditions of agriculture cooperative with a case study of dairy cooperative of Sirajgonj District in Bangladesh. Journal of Co-operative Organization and Management, 8 (1), 100105.
[3]	Akin, I., & Akin, T. (2018). Economic impact of digital dermatitis treatment on a dairy farm: an application of the break-even analysis. Ciência Rural, 48 (8).
[4]	Durham, C. A., Bouma, A., & Meunier-Goddik, L. (2015). A decision-making tool to determine economic feasibility and break-even prices for artisan cheese operations. Journal of dairy science, 98 (12), 8319-8332.
[5]	Titu M. A. S. et al. Online Banking System-Its Application in Some Selected Private Commercial Banks in Bangladesh, IOSR Journal of Business and Management (IOSR-JBM) e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 9, Issue 4 (Mar. - Apr. 2013), PP 37-44, www.iosrjournals.org.
[6]	Kavitha R. Dr., Cost Volume Profitability Analysis - An Empirical Study With Reference To Salem Steel Authority of India Limited (SAIL), Tamilnadu, International Journal of Business and Management Invention (IJBMI) ISSN (Online): 2319 – 8028, ISSN (Print): 2319 – 801X.
[7]	Michael R., Kinney, Cecily A. Raiborn, Cost Accounting Foundations and Evolutions New Delhi (Cengage Learning Publications, 2009).
[8]	Sheeba Kapil, Financial Management (Pearson Publications, New Delhi, 2011).
[9]	Krishnaswami O. R and Ranganathan M., Methodology of Research in Social Sciences (Himalaya Publishing House, Mumbai, 2016).
[10]	Maheshwari S. N. Dr., Sharad, K. Maheshwari, Financial and Management Accounting (New Delhi: Sultan Chand & Sons, 2010).
[11]	Abdullahi, R. S. (2015). Mastering Cost and Management Accounting. (3rd ed) Kano: Sharif Mahir Investment Ltd.
[12]	Ndaliman, M. B., &. Bala, K. C. (2007). Practical Limitations of Breakeven theory.
[13]	Nabil Alnasser Dr., Osama Samih Shaban Dr., Ziad Al Zubi Dr., The Effect if Using Break-Even-Point in Planning, Controlling, and Decision Making in the Industrial Jordanian Companies, Internatinal Journal of Academic Research in Business and Sicial Sciences, May 2014, Vol. 4, No. 5 ISSN: 2222-6990.
[14]	Alam, Ferdous. "Measuring technical, allocative and cost efficiency of pangas (Pangasius hypophthalmus: Sauvage 1878) fish farmers of Bangladesh." Aquaculture Research 42, no. 10 (2011): 1487-1500.
[15]	Abdul et. al (2015), “Relationship between cost management and profitability: A study of selected manufacturing firms”, International Journal of Management Sciences and Humanities, Volume-3, Issue-2, ISSN: 2360-9214.
[16]	Ali Uyar (2010), “Cost and Management Accounting Practices: A Survey of Manufacturing Companies”, Eurasian Journal of Business and Economics, Volume- 3. Issue- (6). pp 113-125.
[17]	Patrick, A. W. “Some Observations on the Break-Even Chart.” Accounting Review (1958): 573-580.
[18]	IlhanDalci et. al (2005), “Activity-Based Cost-Volume-Profit Analysis: Another Approach to Break-Even Analysis”. C. U. Sosyal Bilimler Enstitusu Dergisi, Volume 14, Issue 2, pp 227-244.
[19]	Khan, M. A. S., Siddiki, M. S. R. and Uddin, M. E (2010). Performance of Different Genetic Group of Cows Bangladesh Condition. Bang. J. Anim. Sci., 22 (1): 26-43.
[20]	Haque, S. A. M., 2009. Bangladesh: Social gains from dairy development. In: Animal Production and Health Commission for Asia and the Pacific and Food and Agriculture Organization (APHCA-FAO) publication on smallholder dairy development: Lessons learned in Asia, RAP publication 2009/2.
[21]	Datta, U. K. (2017). COST-BASED PRICING APPROACH AFTER BREAK-EVEN IN MARKETING FOR SMALL & MEDIUM ENTERPRISES (SMEs). Management, 31 (2).

Cite This Article

Plain Text BibTeX RIS

APA Style

Jinnat Ara, Mir Md. Moheuddin, Saddam Hossain, Muhammad Abdus Sattar Titu. (2020). A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh. International Journal of Economic Behavior and Organization, 8(2), 38-43. https://doi.org/10.11648/j.ijebo.20200802.13

Copy | Download

ACS Style

Jinnat Ara; Mir Md. Moheuddin; Saddam Hossain; Muhammad Abdus Sattar Titu. A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh. Int. J. Econ. Behav. Organ. 2020, 8(2), 38-43. doi: 10.11648/j.ijebo.20200802.13

Copy | Download

AMA Style

Jinnat Ara, Mir Md. Moheuddin, Saddam Hossain, Muhammad Abdus Sattar Titu. A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh. Int J Econ Behav Organ. 2020;8(2):38-43. doi: 10.11648/j.ijebo.20200802.13

Copy | Download

@article{10.11648/j.ijebo.20200802.13,
  author = {Jinnat Ara and Mir Md. Moheuddin and Saddam Hossain and Muhammad Abdus Sattar Titu},
  title = {A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {8},
  number = {2},
  pages = {38-43},
  doi = {10.11648/j.ijebo.20200802.13},
  url = {https://doi.org/10.11648/j.ijebo.20200802.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20200802.13},
  abstract = {Break-even analysis is the analysis of the level of sales at which a company would make zero profit and it assists management in determining the number of products to be produced to attain desired profits, the number of products to be produced at a minimum threshold level, gaining desired profits under different cost and volume relationship. This technique has been applied to focus on how selling prices, the volume of sales, total costs such as variable cost and fixed costs as well as the mix of product sold affects profit. This research study aimed to determine the profitability position of several dairy farms in Bangladesh based on their cost-volume of the production. The study is conducted on two dairy farms named as Subarna Agro-Based Initiative and Nusrat Agro & Dairy Farm in Noakhali district. To obtain the objectives, ten years of financial data are taken from the period of 2009-10 to 2018-19 in the form of primary data. Utilizing these data profit volume ratio (P/V ratio), break-even point (BEP) and margin of safety are calculated for ten years. From the analysis, a P/V ratio from 2009-10 to 2018-19 is gradually raised and also break-even point demonstrates an optimal level considering the level of sales volume in ten years. Besides, the margin of safety helps us to know the risk level of a business. As-a-results, this article will lead to making how much cost to be spent to produce the required number of volumes of products to achieve the desired profit goal.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh
AU  - Jinnat Ara
AU  - Mir Md. Moheuddin
AU  - Saddam Hossain
AU  - Muhammad Abdus Sattar Titu
Y1  - 2020/06/23
PY  - 2020
N1  - https://doi.org/10.11648/j.ijebo.20200802.13
DO  - 10.11648/j.ijebo.20200802.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 38
EP  - 43
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20200802.13
AB  - Break-even analysis is the analysis of the level of sales at which a company would make zero profit and it assists management in determining the number of products to be produced to attain desired profits, the number of products to be produced at a minimum threshold level, gaining desired profits under different cost and volume relationship. This technique has been applied to focus on how selling prices, the volume of sales, total costs such as variable cost and fixed costs as well as the mix of product sold affects profit. This research study aimed to determine the profitability position of several dairy farms in Bangladesh based on their cost-volume of the production. The study is conducted on two dairy farms named as Subarna Agro-Based Initiative and Nusrat Agro & Dairy Farm in Noakhali district. To obtain the objectives, ten years of financial data are taken from the period of 2009-10 to 2018-19 in the form of primary data. Utilizing these data profit volume ratio (P/V ratio), break-even point (BEP) and margin of safety are calculated for ten years. From the analysis, a P/V ratio from 2009-10 to 2018-19 is gradually raised and also break-even point demonstrates an optimal level considering the level of sales volume in ten years. Besides, the margin of safety helps us to know the risk level of a business. As-a-results, this article will lead to making how much cost to be spent to produce the required number of volumes of products to achieve the desired profit goal.
VL  - 8
IS  - 2
ER  -

Copy | Download

Author Information

Jinnat Ara

Department of Applied Mathematics, Noakhali Science and Technology University (NSTU), Noakhali, Bangladesh
Mir Md. Moheuddin

Department of CSE (Mathematics), Atish Dipankar University of Science and Technology (ADUST), Dhaka, Bangladesh
Saddam Hossain

Department of Basic Science (Mathematics), World University of Bangladesh (WUB), Dhaka, Bangladesh
Muhammad Abdus Sattar Titu

Department of Mathematics (General Science), Mymensingh Engineering College (MEC), Mymensingh, Bangladesh

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Jinnat Ara, Mir Md. Moheuddin, Saddam Hossain, Muhammad Abdus Sattar Titu. (2020). A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh. International Journal of Economic Behavior and Organization, 8(2), 38-43. https://doi.org/10.11648/j.ijebo.20200802.13

Copy | Download

ACS Style

Jinnat Ara; Mir Md. Moheuddin; Saddam Hossain; Muhammad Abdus Sattar Titu. A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh. Int. J. Econ. Behav. Organ. 2020, 8(2), 38-43. doi: 10.11648/j.ijebo.20200802.13

Copy | Download

AMA Style

Jinnat Ara, Mir Md. Moheuddin, Saddam Hossain, Muhammad Abdus Sattar Titu. A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh. Int J Econ Behav Organ. 2020;8(2):38-43. doi: 10.11648/j.ijebo.20200802.13

Copy | Download

@article{10.11648/j.ijebo.20200802.13,
  author = {Jinnat Ara and Mir Md. Moheuddin and Saddam Hossain and Muhammad Abdus Sattar Titu},
  title = {A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh},
  journal = {International Journal of Economic Behavior and Organization},
  volume = {8},
  number = {2},
  pages = {38-43},
  doi = {10.11648/j.ijebo.20200802.13},
  url = {https://doi.org/10.11648/j.ijebo.20200802.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijebo.20200802.13},
  abstract = {Break-even analysis is the analysis of the level of sales at which a company would make zero profit and it assists management in determining the number of products to be produced to attain desired profits, the number of products to be produced at a minimum threshold level, gaining desired profits under different cost and volume relationship. This technique has been applied to focus on how selling prices, the volume of sales, total costs such as variable cost and fixed costs as well as the mix of product sold affects profit. This research study aimed to determine the profitability position of several dairy farms in Bangladesh based on their cost-volume of the production. The study is conducted on two dairy farms named as Subarna Agro-Based Initiative and Nusrat Agro & Dairy Farm in Noakhali district. To obtain the objectives, ten years of financial data are taken from the period of 2009-10 to 2018-19 in the form of primary data. Utilizing these data profit volume ratio (P/V ratio), break-even point (BEP) and margin of safety are calculated for ten years. From the analysis, a P/V ratio from 2009-10 to 2018-19 is gradually raised and also break-even point demonstrates an optimal level considering the level of sales volume in ten years. Besides, the margin of safety helps us to know the risk level of a business. As-a-results, this article will lead to making how much cost to be spent to produce the required number of volumes of products to achieve the desired profit goal.},
 year = {2020}
}

Copy | Download

TY  - JOUR
T1  - A Mathematical Study of Break-Even Analysis Based on Dairy Farms in Bangladesh
AU  - Jinnat Ara
AU  - Mir Md. Moheuddin
AU  - Saddam Hossain
AU  - Muhammad Abdus Sattar Titu
Y1  - 2020/06/23
PY  - 2020
N1  - https://doi.org/10.11648/j.ijebo.20200802.13
DO  - 10.11648/j.ijebo.20200802.13
T2  - International Journal of Economic Behavior and Organization
JF  - International Journal of Economic Behavior and Organization
JO  - International Journal of Economic Behavior and Organization
SP  - 38
EP  - 43
PB  - Science Publishing Group
SN  - 2328-7616
UR  - https://doi.org/10.11648/j.ijebo.20200802.13
AB  - Break-even analysis is the analysis of the level of sales at which a company would make zero profit and it assists management in determining the number of products to be produced to attain desired profits, the number of products to be produced at a minimum threshold level, gaining desired profits under different cost and volume relationship. This technique has been applied to focus on how selling prices, the volume of sales, total costs such as variable cost and fixed costs as well as the mix of product sold affects profit. This research study aimed to determine the profitability position of several dairy farms in Bangladesh based on their cost-volume of the production. The study is conducted on two dairy farms named as Subarna Agro-Based Initiative and Nusrat Agro & Dairy Farm in Noakhali district. To obtain the objectives, ten years of financial data are taken from the period of 2009-10 to 2018-19 in the form of primary data. Utilizing these data profit volume ratio (P/V ratio), break-even point (BEP) and margin of safety are calculated for ten years. From the analysis, a P/V ratio from 2009-10 to 2018-19 is gradually raised and also break-even point demonstrates an optimal level considering the level of sales volume in ten years. Besides, the margin of safety helps us to know the risk level of a business. As-a-results, this article will lead to making how much cost to be spent to produce the required number of volumes of products to achieve the desired profit goal.
VL  - 8
IS  - 2
ER  -

Copy | Download