What is break even point? Explain this theory.
What is break even point? Explain this theory.
Homework Answers
Break Even point is a price point where there is no profit or loss that means at this point total revenue and total cost are equal. At this price point the total fixed and variable expenses of the company are recovered.
BEP can be calculated as follow:
BEP in Units = Fixed Costs / (Sales Price per Unit - Variable Cost per Unit)
BEP in Dollars= Sales Price per Unit x BEP in Units
Explain the break-even point using bullet points
Explain the break-even point using bullet points
what is a break even point?
what is a break even point?
What is meant by "cost structure?" Explain how a company's cost structure affects the break-even point.
What is meant by "cost structure?" Explain how a company's cost structure affects the break-even point.
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales...
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
By now you all may have read about the meaning of the term "break-even point." It...
By now you all may have read about the meaning of the term "break-even point." It is the level of business activity (volume) where total revenues are just enough to cover total costs, leaving no operating income. In the Cup Theory of Profitability, the break-even point is reached when Sales Dollars are just enough to fill the blue cup AND the yellow cup, leaving the green cup empty. [You can ignore the rest of the information on that page] Why...
Explain how a shift in the sales mix can affect the break-even point and net operating...
Explain how a shift in the sales mix can affect the break-even point and net operating income. Please explain with some examples.
1-a. Compute the companywide break-even point in dollar sales. 1-b. Compute the break-even point for the...
1-a. Compute the companywide break-even point in dollar
sales.
1-b. Compute the break-even point for the Chicago office and
for the Minneapolis office.
1-c. Is the companywide break-even point greater than, less
than, or equal to the sum of the Chicago and Minneapolis break-even
points?
Raner, Harris & Chan is a consulting firm that specializes in Information systems for medical and dental clinics. The firm has two offices--one in Chicago and one in Minneapolis. The firm classifies the direct costs...
What is break-even analysis? What is the difference between a linear and non-linear break-even analysis? Discuss...
What is break-even analysis? What is the difference between a linear and non-linear break-even analysis? Discuss the assumptions that underlie a break-even analysis, especially a linear break-even analysis, and explain what happens if the assumptions are relaxed?
2.5 Points What is an IsoCost Point? a. The Break Even point between two processes b....
2.5 Points What is an IsoCost Point? a. The Break Even point between two processes b. The Break Even point between two competing materials c. The percentage interest rate of a MARR d. None of the above 3.5 Points What is Contingency and why is it important?
Explain how a shift in the sales mix could result in both a higher break-even point...
Explain how a shift in the sales mix could result in both a higher break-even point and a lower net income.
Which statement about the break-even point is false: Multiple Choice The break-even point is where sales are equal to variable costs. The break-even point can be expressed in both units sold and in sales dollars. The break-even point is where contribution margin is equal to fixed costs. O O The break-even point is the level of sales at which point profit is zero.
1-a. Compute the companywide break-even point in dollar
sales.
1-b. Compute the break-even point for the Chicago office and
for the Minneapolis office.
1-c. Is the companywide break-even point greater than, less
than, or equal to the sum of the Chicago and Minneapolis break-even
points?
Raner, Harris & Chan is a consulting firm that specializes in Information systems for medical and dental clinics. The firm has two offices--one in Chicago and one in Minneapolis. The firm classifies the direct costs...
2.5 Points What is an IsoCost Point? a. The Break Even point between two processes b. The Break Even point between two competing materials c. The percentage interest rate of a MARR d. None of the above 3.5 Points What is Contingency and why is it important?
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