A firm's <u>operating breakeven</u><u> point</u> is the level of sales necessary to cover all operating costs.
More about operating breakeven point:
The point at which sales revenue equals all fixed and variable costs while producing no profit for the company is known as the operating breakeven point. A fixed cost is a cost that a company incurs regardless of how many units are produced.
Fixed costs include things like rent, insurance, and interest payments. On the other hand, a variable cost is a cost that varies according on the amount of output. Variable expenses include, for example, labor and raw materials.
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Complete Question:
A firm's ________ is the level of sales necessary to cover all operating costs, i.e., the point at which EBIT equals zero.
A) cash breakeven point
B) financial breakeven point
C) operating breakeven point
D) total breakeven point
Cash float from investing activities is a area of the money go with the flow statement that shows the money generated or spent referring to to funding activities. Investing activities include purchases of bodily assets, investments in securities, or the sale of securities or assets.
<h3>What three major things to do affect the money flows of a business?</h3>
The three categories of cash flows are operating activities, investing activities, and financing activities.
<h3>Which of the following is an instance of a money out glide for a business?</h3>
Obvious examples of cash outflow as skilled through a large vary of corporations consist of employees' salaries, the renovation of business premises and dividends that have to be paid to shareholders. The opposite of cash outflow is cash inflow, which refers to the cash coming into a business.
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The option that falls outside of the classification of business expenditures that fall into the category of variable costs is option C. costs of research and development. Read below about costs of research and development.
<h3>What is a costs of research and development?</h3>
These are costs taken to develop new products or processes that may or may not result in commercially viable items. The general rule is that research and development costs are to be expensed immediately when the costs are incurred.
Therefore, the correct answer is as given above.
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Answer:
They're very simple creatures, though: a sponge doesn't have a respiratory system, a digestive system, or a circulatory system. Instead, sponges rely on the flow of water through their bodies to bring them food and oxygen and carry waste away.
Explanation:
Answer:
$810,000
Explanation:
incremental revenues = 20,000 x $13 = $260,000
incremental direct materials costs = 20,000 x $2 = ($40,000)
incremental direct labor costs = 20,000 x $4 = ($80,000)
additional overhead costs = $200,000 x 15% = ($30,000)
additional administrative expenses = ($86,000)
incremental net income = $24,000
combined net income = incremental net income + regular net income = $24,000 + $786,000 = $810,000