Question

these are mulitple choice
question 1

One of the following is a formula for computing Break-even point. Which one is a. BE = TR - FC - TVC = EBIT = $0 selos b. BE = TVC - FC + 1 = TR = $0 C. BE = TR - TVC = FC = $0 d. BE = TR + FC = TVC = $0 e. None of the above.

question 2)

question 3

question 4)

question 5)

Answer 1

Question 1 Question 4 аpril $4,500.00 $3,000.00 $5,000.00 $1,350.00 900.00 $1,500.00 $ Option (a) is Correct Break Even is a Situation, Where Total Expenses will be equal to Total Revenues Option (d) is Correct July June may sales collections @30% Collections@70% in following month Le., No Profit No loss situation $3,150.00 $2,100.00 $3,500.00 BE TR-FC-TVC-EBIT-$0 Since June sales of $3500 (i.e.,70%) will be collected in july month The Beginning Balance of accounts receivable in july will be $3500 Question 2 Option (a) is Correct We know the formula, Question 5 Beginning Inventory Add Units Produced Less : Ending Inventory Option (a) is Correct 135 855 (Balance Fig) Beyond the break even point 90 No of unit sales Firms Contribution per unit is profit 900 Since The break even point covers the total costs Question 3 Option (b) is Correct DFL % change in EPS/ % change in EBIT 1.75 =% change in EPS/ 15% % change in EPS 15 % * 1.75 Beyond that level, variable costs will be there so firms contribution per unit will be profit 26.25% New EPS @2.50increase of 26.25% 3.15