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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.

<u>Resuming:</u>

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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3 years ago

Accents Associates sells only one product, with a current selling price of $70 per unit. Variable costs are 40% of this selling

katrin2010 [14]

Answer:

$20,000

Explanation:

Break-even sales is the point of sales at which the business incur no profit no loss. At this level of sale the business covers all of the variable and fixed cost associated with the product. Break-even is expressed in sales volume and sales value terms.

Current Selling Price = $70

As we know

Sales price = Variable cost + Contribution margin

Sales price = Variable cost ratio + Contribution margin ratio

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3 years ago

If a project costs $100 comma 000100,000 and is expected to return $27 comma 00027,000 annually, how long does it take to rec

stealth61 [152]

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3 years ago

Suppose that real GDP equals $10 trillion, nominal GDP equals $20 trillion, and the aggregate price level equals 2.

Archy [21]

Answer:

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3 years ago

Suppose the cost per hour incurred in operating a cruise ship is 3a + bv3 dollars per hour, where a and b are positive constants

Airida [17]

Answer:

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Explanation:

The problem can be solved using differentiation to get the minimum value of the speed to travel between the two ports. Step by step calculation is contained in the attached images;

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3 years ago