NAME: WARDA MEHBOOB

ROLL.NO.905-BS-BAF-2017
ASSIGNMENT#2

Poultry egg production in Croatia was analyzed to determine

the best production system and to draw comparison between
those four different systems. These include the free-range
production, caged production, indoor production and organic
egg production. The most effective and efficient system of egg
production is the indoor production system cause of the
following reasons.
 The selling price of the eggs through indoor egg
production system is higher then the rest of the methods
observed although the laying rate in this system was
relatively less.
 The general costs which comprised of insurance, interest
on loans, utility expenses, bank fees etc. were low in the
indoor egg production system.
 The contribution margin achieved in this system was
higher then the rest of the system logically because of the
increase in selling prices. The cost incurred in this method
was not distinctively lesser. However this method yielded
the contribution rate of 21.5% higher than the rest
methods.
  The fixed were not calculated or recorded as they
incurred. Rather a same average was applied in all the
procedures. Since the contribution rate of indoor
produced eggs was higher so it covered the fixed costs
more proficiently. The profit or the income achieved in this
method was higher than the remainder. The profitability
rate was calculated 12.8% of the indoor egg production
procedure.
 The cost effectiveness in the indoor egg production system
was recorded as co-efficient that calculated as 1.12. cost
effectiveness tells that how much cost has been recovered
in terms of income.
 Break even analysis of these various procedure give a
substantial analysis of the various egg production systems.
The break even analysis showed that the indoor produced
eggs system had a lower break even point. Therefore it
suggests that profit or income in this case achieved at
lower quantity comparatively. It had lower break even
quantity as compared to caged and organic egg
production.

QUESTION#2
BREAKEVEN ANALYSIS COST EFFECTIVENESS
 Break even analysis  Cost effectiveness is an
is a financial tool economic analysis
that can be used to method that measures
determine the the effectiveness of cost
 economic efficiency with respect to the
of a particular income earned.
method.  It helps in determining
 It tells us the that how much cost has
specific point, been recovered through
further which profit profit generation
can be achieved and
bellow that point
loss is incurred.