The break-even point tells a company the number of units or the
amount of revenue that it must sell or earn in order to pay for all
of its costs. At this point, the company has neither profit nor
loss.
Companies have two main types of costs: variable costs and fixed
costs.
Variable costs are those costs that vary with the number of
units produced. Examples of variable costs are direct labor, direct
materials and overhead.
Fixed costs are those...
S.S Corporation had sales of Rs. 4,500,000. The fixed expense was Rs. 1,200,000 and variable expense totaled Rs. 1,800,000. You are required to calculate Break-Even Point for S.S Corporation.
Cornwell Company is in business since 2010, makes swimwear for professional athletes. Analysis of the firm's record for the year reavelas the following:
Average swimsuit selling price $140
Average swimsuit expenses:
Direct Material ...
Cornwell Company is in business since 2010, makes swimwear for professional athletes. Analysis of the firm's record for the year reavelas the following:
Average swimsuit selling price $140
Average swimsuit expenses:
Direct Material ...
Give an example from your own experience where you used a break-even point analysis. What parameters were necessary to find the break-even point? Please include your break-even calculations based on the equation from page 8 in the textbook. Or Create your own probability problem. Define what type of probability problem you have and show the best approach to solving the problem..
how does the break-even point fit into this discussion? What is
the break-even point? Why is it an important concept in managerial
accounting? What are its uses?
Evaluate whether each statement is true or false.
1. On a CVP graph, the break-even point will move up and to the
right if a company increases units sold.
[ Select ]
["False", "True"]
2. Holding all else equal, if production decreases then the
contribution margin ratio will remain the same but gross margin
percentage will decrease.
...
Find the break even point ?
Rent is $10,000. Salaries to be paid is $50,000. Misc. Fixed
costs are $40,000.
Raw Materials are $4 per unit. Packaging is $.10 cents per unit.
Direct Labor is $3.40 per unit. Sales price is $10.00 per unit.
If annual capacity was 30,000 units, how much would the
sales price need to be to break even?
Find the break even point ?
Rent is $10,000. Salaries to be paid is $50,000. Misc. Fixed
costs are $40,000.
Raw Materials are $4 per unit. Packaging is $.10 cents per unit.
Direct Labor is $3.40 per unit. Sales price is $10.00 per unit.
If annual capacity was 30,000 units, how much would the
sales price need to be to break even?
Draw your own graph by adding a new AS or AD curve to the graph
above to illustrate the effect of each of the following conditions:
a. The price of crude oil rises significantly. b. Spending on
national defense doubles. c. The costs of imported goods increase.
d. An improvement in technology raises labor productivity.