PRACTICE QUESTIONS ON BREAK-EVEN ANALYSIS 1. A small firm intends to increase the capacity of a bottleneck operation by adding a new machine. Two alternatives‚ A and B‚ have been identified and the associated costs and revenues have been estimated. Annual fixed costs would be $40‚000 for A and $30‚000 for B; variable costs per unit would be $10 for A and $12 for B; and revenue per unit would be $15 for A and $16 for B. a) Determine each alternative’s break-even point in units. b) At what volume of
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Calculating the break-even point To avoid making a loss every business must at least break-even by achieving a level of sales that covers its total costs. But what level of sales is necessary to break-even? To explore the concept of break-even‚ we need to define some basic terms: Fixed costs: Costs that do not vary with output or sales e.g. managers salaries‚ rent and rates on business premises. Variable costs: Costs that vary with the quantity produced or sold e.g. costs of materials
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Definition of Break Even point: Break even point is the level of sales at which profit is zero. According to this definition‚ at break even point sales are equal to fixed cost plus variable cost. This concept is further explained by the the following equation: [Break even sales = fixed cost + variable cost] The break even point can be calculated using either the equation method or contribution margin method. These two methods are equivalent. Equation Method: The equation method centers on
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what size of college you want to attend. Let me just tell you small colleges are better than large universities. “Size matters. It can really make a difference in a student’s college experience.” (2016 The Charlotte Observer) Small colleges give you a better chances in the classroom. Attending a smaller college means you’ll have a better relationship with all the people around you‚ especially with your professors. Classrooms at small colleges class sizes are smaller‚ this has two different advantages
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To be an individual is more beneficial than conforming to society. Followers allow people to control themselves‚ but an individual stands for what he believes in. A major difference between a follower and an individual is conformity. Someone who conforms to society follows a group of people and is influenced by everything that group of people does. An individual who doesn’t conform to society is self reliant and courageous. In the article Self Reliance‚ the author writes‚ “It may be
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Fighting Ground Summer Reading Assignment The Fighting Ground is about a thirteen year old boy named Jonathan. Jonathan has wanted to be a soldier since he was a little boy because his father and his brother were also soldiers. There was going to be a war and Jonathan wanted to join. However‚ his father disagreed of him being a soldier because he was too young. Jonathan went to the tavern where the Americans prepared to fight without any telling anyone. Before he started fighting he was kidnapped
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A Small Town South Dakota‚ 1946. A small isolated town‚ known for it’s wheat crop‚ it’s ten acres of wheat crops. One night‚ the sky was pitch black and everything was so quiet you could hear the electrical noise coming from the outside cables. Houses were lightened by one light in the living room and the streets were illuminated by one street light per block. When suddenly an object flashes in the sky‚ it made a loud screeching noise. Families walked outside to see what was happening‚ and
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Innovativeness…………………………………………………………………………………………….….………….11 6. 7. Risk Taking…………………………………………………………………………………………………….……..11-12 8. 9. Proactive………………………………………………………………………………………………………………12-14 10. 11. Competitive Aggressiveness…………………………………………………………………………………14-15 12. 13. Small business obstacles and recent growth trend…………………………………………….…15-18 14. 2.8 Management Competence……...................................................................................18-21 2.9 Research Questions……………………………………………………………………………………
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To be honest‚ I thought “Even the Rat was White” was a pretty interesting book to read because I got to learn more about racism in the white dominated field of psychology. I thought the book did a good job of covering the important facts of racism in psychology because when you look at psychology now in my opinion; it has become more diverse than ever. Before I read the book‚ I didn’t know if I was quite ready to read it since it was going to be about racism in the field of psychology. While reading
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There are many different aspects to your health care provider’s behavior‚ speech‚ dress‚ and techniques that could be considered ritualistic. These ritualistic acts seem to start from phone call‚ and continue to your aftercare. There are many steps included in seeking medical care. Whether you are trying to receive a check-up‚ or you are seeking treatment from a specialist‚ it usually starts with an appointment. If you already have a doctor than you should have better luck being seen on an emergency
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