describe applications of break-even analysis in practice. provide limitations of break-even analysis.

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ekkarill92 answered 1 year ago

Critically evaluate the limitations of Break-Even Analysis

Discuss the limitations of break-even analysis in production and how to overcome these limitations.

What is break-even? How is break-even calculated? How is a break-even analysis used? What are the...

What is break-even? How is break-even calculated? How is a break-even analysis used? What are the risks if break-even is not analyzed carefully?

The objective of break-even analysis is:

The objective of break-even analysis is:A.determine the number of units to produce that will equate total profit with total costB.determine the number of units to produce that will equate total revenue with total costC.determine the number of units to produce that will equate variable cost with fixed costD.determine the number of units to produce to maximize profit

Break-even Analysis : Break-even analysis attempts to determine the volume of sales necessary for a manufacturer...

Break-even Analysis : Break-even analysis attempts to determine the volume of sales necessary for a manufacturer to cover costs, or to make revenue equal costs. It is helpful in setting prices, estimating profit or loss potentials, and determining the discretionary costs that should be incurred. The general formula for calculating break-even units is: Break-even Units = ( Total fixed costs ) / ( Unit selling price - Unit variable cost ) In StratSim, total fixed costs can be broken into...

What is the purpose of break even Analysis?

Consider the concept of break even analysis and target income. In order to apply break even...

Consider the concept of break even analysis and target income. In order to apply break even analysis, why would the expenses reported in external financial reports need to be reorganized into categories based on cost behavior? How do these analytical tools relate to product pricing and cost management (i.e., why would this analysis be useful to management)?

Explain break-even analysis, its purpose, and whether break-even analysis can be used in manufacturing and/or service...

Explain break-even analysis, its purpose, and whether break-even analysis can be used in manufacturing and/or service industry.

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.

Here is a break-even analysis model. Break-even Analysis Revenue Selling Price per unit $20 Costs Fixed...

Here is a break-even analysis model. Break-even Analysis Revenue Selling Price per unit $20 Costs Fixed Costs per unit $210,000 Variable Cost per unit $8 Break-even Point Quantity (Q) 17,500.00 Do the following two tasks. a. Create a strategy table showing how the quantity changes as the selling price varies from $18 to $22. b. Create a strategy table showing how the quantity changes as the selling price varies from $18 to $22 and the variable cost per unit changes...

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