Application of Break Even Point Analysis on Some Agricultural Products. The Case of Kahta (Adiyaman) District

Abstract

The most important goal of the business is to make a profit. It is expected that in the businesses, the production factors will be used effectively and the profit target will be achieved. Profit is also the most important indicator in agricultural production enterprises. To achieve this goal, profit planning is required. One of the most appropriate methods used in profit planning is break even point analysis. With the help of break even point analysis, important information is obtained about the level of production at which the enterprise passes to profit, how the changes in production affect the profits and the amount of production required to achieve a certain profit target. In this study, fifteen of the agricultural products produced in Kahta district of Adıyaman were subjected to break even point analysis in order to determine the level of transition to profit. The statistical data of Kahta District Directorate of Agriculture and Forestry in 2018 were used in this study. Break-even point was calculated for each product by analyzing the data. According to the results of the analysis, the products that reached the highest yield / break-even point ratio were onion, melon and tomato.

Keywords: Break even point analysis, agricultural production, cost, Kahta

DOI: 10.7176/JESD/10-16-10

Publication date: August 31^st 2019