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Author(s):

Nandhana S Nair | Ms. Suma R
Keywords:

CVP Analysis, Break-even Point, Contribution Margin, Fixed Costs, Variable Costs, Cost Behavior, Financial Planning, Pricing Strategies, Target Profit Analysis, Operating Income, Textile Manufacturing, Agricultural Industry
Abstract:
This Paper Presents A Comprehensive Cost-Volume-Profit (CVP) Analysis Of Gayathri Mills, Located In Palakkad, Which Is Engaged In Manufacturing Products Within The Agricultural And Textile Sectors. The Primary Objective Of This Study Is To Assess The Company’s Cost Behavior And Evaluate How Various Cost Factors Affect The Overall Profitability. The CVP Analysis Includes A Detailed Examination Of The Company's Fixed And Variable Costs, Contribution Margin, And The Break-even Point. It Also Evaluates How Changes In Sales Volume, Product Pricing, And Cost Structure Can Influence The Net Operating Income. By Categorizing The Expenses And Assessing Their Variability With Respect To Production Output, The Analysis Provides A Strong Foundation For Managerial Decisions On Pricing, Budgeting, And Expansion Planning. Through Break-even And Target Profit Analysis, The Study Highlights The Level Of Sales Required To Avoid Losses And Identifies The Sales Threshold Necessary To Achieve Specific Profit Goals. This Research Is Vital In Enabling Gayathri Mills To Implement Cost Control Measures And Pricing Strategies That Can Lead To Enhanced Profitability And Long-term Sustainability.

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