Explain the break-even point using bullet points
Explain the break-even point using bullet points
Homework Answers
Answer
- Break Even point is that ‘point’ where there are neither any income nor any loss.
- The company is said to be at Break Even point if the sales are generating a contribution margin that is equal to the fixed costs of the company.
- It is also said to be that ‘point’ after achieving which, the company can start earning some Net Income.
- Any volume of sale:
--Below Break Even point will give LOSS
--At Break Even point will give $ 0 of Net Income or Loss
--Above Break Even point will give positive INCOME. - Break Even point calculation formulas:
--Fixed Cost / Contribution margin per unit
--Fixed Cost / CM Ratio
What is break even point? Explain this theory.
What is break even point? Explain this theory.
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?
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...
Using the following data, determine the following for each firm: Break even points in terms of...
Using the following data, determine the following for each firm: Break even points in terms of units Margin of Safety Operating Leverage ABC, Inc XYZ, Inc Tax Rate 20% 15% Units Sold 5000 5000 Sales $300,000 $300,000 Variable Costs $180,000 $60,000 Contribution M Fixed Costs $75,000 $195,000 Operating Income Determine number of units to be sold to reach a profit of $95,000 after taxes. Explain why one firm must sell more units to reach the $95,000 after-taxes target profit despite...
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.
In each of the following cases, calculate the accounting break-even and the cash break-even point...
In each of the following cases, calculate the accounting
break-even and the cash break-even points. Ignore any tax effects
in calculating the cash break-even. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
In each of the following cases, calculate the accounting break-even and the cash break- even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Unit...
e break-even point will decrease. B. The break-even point will l break-even point will remain constant....
e break-even point will decrease. B. The break-even point will l break-even point will remain constant. Il other things held constant, how will an increase lll The effect on the break-even point can't be predicted with certainty. 4. Fixed costs: A. Fall as sales volume falls. C. Rise as sales volume falls. B. Rise as sales volume rises. D. Remain steady when sales volume changes. 5. Variable costs would include: A. Rent expense B. Depreciation expense-straight line. C. Sales commission...
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.
In a break-even point model, if the decision is to produce less than the break-even amount,...
In a break-even point model, if the decision is to produce less than the break-even amount, there will be a profit. True False
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.
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?
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...
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.
In each of the following cases, calculate the accounting
break-even and the cash break-even points. Ignore any tax effects
in calculating the cash break-even. (Do not round
intermediate calculations and round your answers to 2 decimal
places, e.g., 32.16.)
In each of the following cases, calculate the accounting break-even and the cash break- even points. Ignore any tax effects in calculating the cash break-even. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Unit...
e break-even point will decrease. B. The break-even point will l break-even point will remain constant. Il other things held constant, how will an increase lll The effect on the break-even point can't be predicted with certainty. 4. Fixed costs: A. Fall as sales volume falls. C. Rise as sales volume falls. B. Rise as sales volume rises. D. Remain steady when sales volume changes. 5. Variable costs would include: A. Rent expense B. Depreciation expense-straight line. C. Sales commission...
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