The sales level that results in a project's net income exactly equaling zero is called the...
The sales level that results in a project's net income exactly equaling zero is called the ________ break-even.
scenario
breakeven
simulation
sensitivity
Homework Answers
The correct answer is mentioned below :
The Correct answer is "A" - Scenario
Because, generally the Breakeven is known as the point at which the total cost and total revenue are equal. The managers mostly use breakeven analysis to set a price to understand the economic impact of various price and sales volume scenario.
And, rest of all answers are incorrect because no relevance with any of the options left for the asked question.
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The sales level that results in a project's net income exactly
equaling zero is called the...
The sales level that results in a project's net present value exactly equaling zero is called...
The sales level that results in a project's net present value exactly equaling zero is called the _____ break-even. operational leveraged accounting cash financial
Which of the following statements is (are) the most correct? A. Sensitivity study is a technique...
Which of the following statements is (are) the most correct? A. Sensitivity study is a technique in which key variables are changed one at a time. B. Scenario study is a technique in which “bad” and “good” sets of financial circumstances are compared with a most likely situation. C. Monte Carlo Simulation is a technique in which probable future events are simulated on a computer. D. Breakeven is a technique to determine the level of sales at which a project...
3-b. Verify your answer by preparing a contribution format income statement at the target sales level....
3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34). Dollars Percentage Margin of safety 5. What is the company's CM ratio? If monthly sales increase by $98,000 and there is no change in...
6 Fixed costs Variable costs as a % of sales Desired net income 200,000 20% 500,000 Compute: Break even in $$ Required...
6 Fixed costs Variable costs as a % of sales Desired net income 200,000 20% 500,000 Compute: Break even in $$ Required sales in $$ to earn desired net income 7 Fixed costs Variable costs as a % of sales Current net income Desired net income 300,000 20% 500,000 1,000,000 Compute: Break even in $$ Current sales in $$ Required sales in $$ to earn desired net income
Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income...
Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $1,020,000 765,000 255,000 156,000 99,000 65,000 34,000 East $ 680,000 44000 136,000 58.000 $ 78,000 $340,000 221,000 119,000 98,000 $ 21.000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement...
7 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000...
7 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 75,000 $ 18,000 Per Unit $20 14 $ 6 25 oints eBook Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer...
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal....
Target Income and Margin of Safety At the break-even point, sales and costs are exactly equal. However, the goal of most companies is to make a profit. When a company decides that it wants to earn more than the break-even point of income, it must define the amount it thinks it will realistically make. By modifying the break-even equation, the sales required to earn a target or desired amount of profit may be computed. Complete the following: If a company...
Question 15 10 points If forecasted sales exceed the accounting break-even level but are less than...
Question 15 10 points If forecasted sales exceed the accounting break-even level but are less than the economic break-even level, then the project has a: 1. positive NPV II. negative NPV III. positive net income IV. negative net income O AI and III B. II and IV c. I and IV D. II and III E. None of the above
Several types of analyses are available for evaluating a project's risk. In the following table, correctly...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
L Jutlet Income Jueu to break even? To earn net income of $159,600? ome if the...
L Jutlet Income Jueu to break even? To earn net income of $159,600? ome if the number of customers is 145,000. 13.000 2.23 CVP analysis, sensitivity analysis. Tuff Kids Jeans Co sells blue jeans wholesale to major retauer across the country. Each pair of jeans has a selling price of $30 with $21 in variable costs of goods sold The company has fixed manufacturing costs of $1.200.000 and fixed marketing costs of $300,000. Sales commissions are paid to the wholesale...
3-b. Verify your answer by preparing a contribution format income statement at the target sales level. Menlo Company Contribution Income Statement Total Per unit 4. Refer to the original data. Compute the company's margin of safety in both dollar and percentage terms. Round your percentage answer to 2 decimal places (i.e.1234 should be entered as 12.34). Dollars Percentage Margin of safety 5. What is the company's CM ratio? If monthly sales increase by $98,000 and there is no change in...
6 Fixed costs Variable costs as a % of sales Desired net income 200,000 20% 500,000 Compute: Break even in $$ Required sales in $$ to earn desired net income 7 Fixed costs Variable costs as a % of sales Current net income Desired net income 300,000 20% 500,000 1,000,000 Compute: Break even in $$ Current sales in $$ Required sales in $$ to earn desired net income
Sales Variable expenses Contribution margin Traceable fixed expenses Segment margin Common fixed expenses Net operating income Total Company $1,020,000 765,000 255,000 156,000 99,000 65,000 34,000 East $ 680,000 44000 136,000 58.000 $ 78,000 $340,000 221,000 119,000 98,000 $ 21.000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the East region. 3. Compute the break-even point in dollar sales for the West region. 4. Prepare a new segmented income statement...
7 Sales Variable expenses Contribution margin Fixed expenses Net operating income Total $ 310,000 217,000 93,000 75,000 $ 18,000 Per Unit $20 14 $ 6 25 oints eBook Required: 1. What is the monthly break-even point in unit sales and in dollar sales? 2. Without resorting to computations, what is the total contribution margin at the break-even point? 3-a. How many units would have to be sold each month to attain a target profit of $34,200? 3-b. Verify your answer...
Several types of analyses are available for evaluating a project's risk. In the following table, correctly identify the analysis being described. Scenario Analysis o Sensitivity Simulation Analysis Analysis 0 0 0 Estimates the NPV after a given period of time, assuming specific changes in the values of multiple key factors that could affect a project's NPV Uses an algorithmic method to pick values randomly from probability distributions to calculate a project's NPV Requires changes in one assumption at a time...
L Jutlet Income Jueu to break even? To earn net income of $159,600? ome if the number of customers is 145,000. 13.000 2.23 CVP analysis, sensitivity analysis. Tuff Kids Jeans Co sells blue jeans wholesale to major retauer across the country. Each pair of jeans has a selling price of $30 with $21 in variable costs of goods sold The company has fixed manufacturing costs of $1.200.000 and fixed marketing costs of $300,000. Sales commissions are paid to the wholesale...
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