All categories

3 years ago

Which of the following statements is true of break-even point?

Business

1 answer:

Misha Larkins [42]3 years ago

6 0

Answer:

D) It helps managers exercise control after the product has been created and is ready for marketing.

Explanation:

Break-even point is the point where the total cost matches the total revenue,it is helpful to managers in order to control the business,it helps them to know when to implement certain changes or favorable incentives for improved sales and overall revenue.

It is calculated by dividing the total fixed cost/total revenue for one unit minus the variable cost for one unit.

It helps managers to control the profit margins in a given product,and also know the impact of changes to total revenue or profit when a process is Automated.

You might be interested in

Expected direct materials purchases in Metlock Company are $204000 in the first quarter and $264000 in the second quarter. 35 pe

Nataliya [291]

Answer:

The budgeted cash payments for the second quarter are $225000

Explanation:

The cash payments in the second quarter will comprise of cash purchases for the second quarter which are 35% of purchases for the second quarter along with 65% of payments due for purchases of the first quarter.

The cash payment budgetedn for the second quarter is,

Cash payment = 0.35 * 264000 + 0.65 * 204000 = $225000

6 0

3 years ago

Malinda's auto dealership of imported cars made $895,000 in revenue. The manager has determined that the total expenses equal to

jarptica [38.1K]

Answer:

Profits: $297,000

Explanation:

Revenue is the money generated by a business by selling its products and services to customers. Expenses are the cost incurred in the production and selling of goods and services.

Profits arise when revenues exceed expenses.

For Malinda Auto dealership, the revenue ($895,000) exceed expenses($598,000). Therefore, the business will realize a profit.

Profit = revenue - expenses

=$895,000 -$598,000

=$297,000

8 0

3 years ago

Winston Clinic is evaluating a project that costs $52, 125 and has expected net cash inflows of $12,000 per year for eight years

kvv77 [185]

Answer:

Payback period (years): 4.23 years

NPV: $6,685

IRR: 16%

MIRR: 14%

The project is financially acceptable because IRR and MIRR is greater than cost of capital

Explanation:

Payback period is calculating the number of year when cash inflow can cover cash outflow (regardless the present value of cash inflow).

As we can easily estimate, cash inflow in 5 year can cover the investment.

Then payback period = 4 years + 12000/52,125 = 4.23 years

We can use excel to calculate NPV, IRR, MIRR in the formula as below

Net present value of project: NPV=(discounting rate, cash outflow, cash inflow) = (12%, -52125,12000,12000......,12000) = $6,685

Internal rate of return: IRR= (cash outflow, cash inflow) = ( -52125,12000,12000,......,12000) = 16%

Modified internal rate of return: MIRR = (cash outflow, cash inflow, IRR, cost of capital) = (-52125,12000,12000......,12000,16%,12%) = 14%

<em>Please see attachment for more details.</em>

Download xlsx

5 0

3 years ago

Use the following data to determine the total amount of working capital.

Leokris [45]

Answer:

$353,800

Explanation:

Working Capital = Current Assets - Current Liabilities

where,

CA = $146000 + $189000 + $155000 + $94800 = $584,800

CL = $206000 + $25000 = $231,000

therefore,

Working Capital = $584,800 - $231,000 = $353,800

6 0

3 years ago

_____ gives the property owner an allowance for the decline in the physical condition of real estate over time.

Over [174]

Depreciation gives the property owner an allowance for the decline in the physical condition of real estate over time., the actual decline in an asset's fair value, such as the annual decline in value of factory equipment due to use and wear, and second, the allocation in accounting statements of the asset's original cost to periods during which the asset is used.

Depreciation in accounting refers to two different aspects of the same idea: first Depreciation is the process of reallocating, or "writing down," the cost of a tangible item (such as equipment) over the course of that asset's useful life.

To learn more about Depreciation, click here.

brainly.com/question/15085226

#SPJ4

6 0

2 years ago