Terminology Assignment: It is very important to understand various terms associated with the calculation of break-even....

Terminology Assignment:

It is very important to understand various terms associated with the calculation of break-even. Let’s practice understanding this terminology by assuming that you own a dog grooming business. You will use the dog grooming service as a basis when answering the following questions; this assignment does not pertain to the health care business that you are creating for this class:

1. Research the concept of break-even point. Why is it important for you to know how many dogs must be groomed each week in order for you to reach your break-even point? What would be the effect if you did not know this number? (4 points)

2. Research the concept of fixed costs. Give two examples of fixed costs for your dog grooming service. (4 points)

3. Research the concept of variable costs. Give two examples of variable costs for your dog grooming service. (4 points)

4. How are the fixed costs and the variable costs in your business affected by changes in productivity levels? What might you do to reduce both the fixed and variable costs as the owner of the dog grooming service? (6 points)

Expert Solution

jeff jeffy answered 10 months ago

It is very important to understand various terms associated with the calculation of break-even. Let’s practice...

It is very important to understand various terms associated with the calculation of break-even. Let’s practice understanding this terminology by assuming that you own a dog grooming business. You will use the dog grooming service as a basis when answering the following questions; this assignment does not pertain to the health care business that you are creating for this class: 1. Research the concept of the break-even point. Why is it important for you to know how many dogs must...

Explain why break even is so important. Describe the elements of break even and write the...

Explain why break even is so important. Describe the elements of break even and write the formula for break even.

Break-Even Analysis Most people intuitively understand that you ‘must at least break-even” and that you must...

Break-Even Analysis Most people intuitively understand that you ‘must at least break-even” and that you must go beyond break-even to earn a profit. For this exercise, create a hypothetical math problem scenario (word problem!) to demonstrate the calculation of break-even point. Set up the scenario and explain the calculation. Using that example, explain what that break-even point means for that business owner. The book example is about nachos, so choose something else that interests you.

Q2. (a) WHAT IS BREAK - EVEN POINT? (b) EXPLAIN THE IMPORTANT MANAGERIAL USES OF BREAK-EVEN...

Q2. (a) WHAT IS BREAK - EVEN POINT? (b) EXPLAIN THE IMPORTANT MANAGERIAL USES OF BREAK-EVEN ANALYSIS.

Payback period was the earliest selection criterion. The is a "break-even" calculation in the sense that...

Payback period was the earliest selection criterion. The is a "break-even" calculation in the sense that if a project's cash flows come in at the expected rate, the project will break even. The equation is: The a project's payback, the better the project is. However, payback has 3 main disadvantages: (1) All dollars received in different years are given weight. (2) Cash flows beyond the payback year are ignored. (3) The payback merely indicates when a project's investment will be...

What are the various formulas available to compute break even?

TYPE ANSWERS 1. Be able to calculate gains and losses on stock investments Understand terminology associated...

TYPE ANSWERS 1. Be able to calculate gains and losses on stock investments Understand terminology associated with bonds, and be able to calculate a return on a bond investment Identify if a bond is issued at par value, a discount, or a premium Be able to give examples of different types of bonds

The purpose of this assignment is to understand the terms import and export, and then explain...

The purpose of this assignment is to understand the terms import and export, and then explain the advantages or disadvantages of buying imports rather than buying domestic products. You could, for instance, write about an imported automobile, stereo, or household appliance that you bought or considered buying. Include all of the following points in your discussion. If you were a retailer, would you want to sell domestically made goods or imported items? Please explain why you made this choice. If...

How do I paraphrase the following, "Break-even analysis includes the calculation as well as examination of...

How do I paraphrase the following, "Break-even analysis includes the calculation as well as examination of the margin of safety for a firm grounded on the revenues collected and related costs. Analyzing various price levels connected to different levels of demand, a firm utilizes break-even analysis to get what level of sales are required covering total fixed costs. A demand-side analysis will provide a seller much insight concerning selling capabilities. Break-even analysis checks at the level of fixed costs relative...

what Break-even analysis means, and why it is important to a business. &nb

what Break-even analysis means, and why it is important to a business.

Question