TABLE OF CONTENTS
1. Break Even Analysis?................................................................04
Objectives ???????????????????????.05
Assumptions?????????????????????....05
Fixed, Variable and Semi Variable Costs????????.?05
Methods used for calculating break-even costs??????07
Advantages and Limitations??????????????...09
Contribution Margin??????????????????..11
2. OVERVIEW OF THE INDUSTRY???????????....12
Low Cost Carriers???????????????????..12
History of Indian Aviation????????????????13
The Current Scenario?????????????????...14
3. SPICEJET????????????????????????...18
4. CALCULATION AND ANALYSIS OF BREAKEVEN ??????26
5. CONSIDERATIONS AND RECOMMENDATIONS???????.31
6. REFERENCES??????????????????????..32
BREAK EVEN ANALYSIS ? AN INTRODUCTION
One of the most common tools used in evaluating the economic feasibility of a new enterprise or product is the break-even analysis. The break-even point is the point at which revenue is exactly equal to costs. At this point, no profit is made and no losses are incurred. The break-even point can be expressed in terms of unit sales or dollar sales. That is, the break-even units indicate the level of sales that are required to cover costs. Sales above that number result in profit and sales below that number result in a loss. The break-even sales indicates the dollars of gross sales required to break-even.
It is important to realize that a company will not necessarily produce ...