a) What is Break Even point? Break even point is the point at which income and expenses of are totally equal. So the business has not made any profit or any loss at this point. But when it comes to the total value of expenses is higher than total profit‚ the organization will suffer losses. Losses will result the opposite effect of profits. An organization that suffer losses may be forced to decrease their operational output. The reduction may consist of reducing their employees‚ shutting down their
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Break Even Analysis In business planning‚ asking the proper questions and obtaining answers to those questions is arguably the most important thing. Questions such as; how much do we have to sell to reach our profit goal? How much do our sales need to increase in order to cover a planned increase in advertising costs? What price should we charge to cover our costs and allow for the planned profit goals? Is our business going to be profitable? Answers to such difficult questions become accessible
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My dear Lucy‚ I know that I am not supposed to be writing to you right now but I just couldn’t help it; I need to express myself to you on everything that has been going on here in the trenches. The trenches are so cold at the moment; I wish it would stay this way though. It’s perfect right now‚ beautiful snowfall and this I am happy for‚ brings us back the old memories of me and you. Unfortunately it will not be like this forever‚ it will be summer in a while and that is going to be bad. I remember
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Break even analysis is an important part in production management and decision making. In this assignment‚ the key elements of the break-even analysis will be discussed. The key elements of break-even analysis are fixed cost‚ variable cost‚ total revenue‚ break-even point and margin of safety. Although break-even analysis is very useful‚ it has disadvantages. Break-even analysis is based on the production cost of the company which includes the fixed cost and variable cost. Then the total cost of
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MANAGERIAL ACCOUNTING CVP/BREAK EVEN ANALYSIS Deer Valley Lodge‚ a ski resort in the Wasatch Mountains of Utah‚ has plans to eventually add five new chairlifts. Suppose that one lift costs $2 million‚ and preparing the slope and installing the lift costs another $1.3 million. The lift will allow 300 additional skiers on the slopes‚ but there are only 40 days a year when the extra capacity will be needed. (Assume that Deer park will sell all 300 lift tickets on those 40 days.) Running the new lift
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Life in the trenches‚ during World War I‚ was a horrible experience for the soldiers of that time. Many soldiers were faced with death during these times. The sources of their deaths were either enemy attacks or their contraction of harmful diseases. Another major obstacle‚ in the trenches‚ was of the infestation of rats. Rats‚ either black or brown‚ were feared and were nuisances to the soldiers. Brown rats‚ especially‚ were detested due to their tendencies to feed on human remains‚ including the
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Chapter 7 - [ cost – volume – profit Analysis leverage ] Cost – Volume – profit Analysis {or Break ever analysis ) The break even point (BEP) man be defined as that level of sales at which total revenue in equal to total costs x the co will make no profit x also will have no loss. The volume of sales corresponding to BEP is known as break even output . If the co producer & sells less than the BE output it would in an a loss &if it producer &sells more than the BE output it
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BREAK EVEN ANALYSIS Introduction Break-even analysis is a technique widely used by production management and management accountants. It is based on categorising production costs between those which are "variable" (costs that change when the production output changes) and those that are "fixed" (costs not directly related to the volume of production). Total variable and fixed costs are compared with sales revenue in order to determine the level of sales volume‚ sales value or production at which
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Matthew Xu Mr. Angus A.P. Biology Period 9 17 February 2016 4 Day Break Essay 1). In the majority of species‚ a small yet motile sperm fertilizes a much larger but also immobile egg to create a zygote. This zygote must then undergo cleavage. In humans‚ cleavage occurs about 24 hours after the forming of a zygote. Cleavage is a succession of mitotic cell divisions without cell growth between division cycles. There is close to no cell growth because during cleavage‚ the embryonic cells undergo the
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Break-Even Analysis FIN/200 July 29‚ 2010 Justin Henegar 13. Healthy Foods‚ Inc.‚ sells 50-pound bags of grapes to the military for $10 a bag. The fixed costs of this operation are $80‚000‚ while the variable costs of the grapes are $.10 per pound. a. What is the break-even point in bags? 80‚000/5= 16‚000 bags- This is the company’s break-even point because the variable per unit would be $5.00 if it’s .10 per pound with a 50-lb bag. The other answer I received was 8‚080 bags but this would
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