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3 years ago

If sales units exceeds the break-even point in units, the firm will experience

Business

1 answer:

BigorU [14]3 years ago

8 0

Answer:

an operating profit

Explanation:

$\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}$

Where:

$\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio$

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

The sales, after variable cost, generate a contribution, this contribution in relationship with sales can be measure as a ratio.

And this ratio applied to fixed cost get us the sales level at which the company can aford both, their fixed cost and variable cost.

Resuming:

The break even is the sales level which generate enough contribution to pay up the fixed cost and the variable cost generated for the sales.

If sales are higher than BEP then it will pay their variable and fixed cost and also make a profit.

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Answer:

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Explanation:

Determine the depreciable cost,

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3 years ago

Honda Motor Company is considering offering a $ 1 comma 800 rebate on its minivan, lowering the vehicle's price from $ 30 comm

finlep [7]

Answer:

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Explanation:

Giving the following information:

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Honda's profit margin with the rebate is $5650 per vehicle.

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New price:

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3 years ago

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Answer:

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2 years ago

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2 years ago

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3 years ago