All categories

4 years ago

Select the correct statement regarding break-even point analysis.

Business

1 answer:

svetoff [14.1K]4 years ago

3 0

Answer:

Option B is true.

Explanation:

Giving the following information:

The break-even point in units formula is:

Break-even point= fixed costs/ contribution margin

What changes the break-even point:

A variation in fixed costs.

A variation on the selling price.

A variation in the unitary variable cost.

The higher the fixed costs, the higher the number of units. Lower the contribution margin, the higher the number of units.

Therefore:

a. An increase in contribution margin per unit causes the break-even point in units to increase. False, is the opposite.

b. An increase in fixed costs causes the break-even point to increase. True, now the organization needs to sell more units to cover the fixed costs.

c. The break-even point in sales dollars equals total fixed costs divided by contribution margin per unit. False, in dollars you need to divide it for the contribution margin ratio (contribution margin / selling price).

d. A decrease in the variable cost per unit causes the break-even point in units to increase. False, is the opposite.

You might be interested in

Why is communism disappearing? Hint: (demand market v. Command market)

Luda [366]

Answer:

Because of the overpowering status of Capitalism.

Explanation:

In Marxist and Communist Thought or Ideology (sometimes the same thing), there are many different perspectives on the matter. The Classical Marxist thought would say that Communism never truly existed, and cannot be a regime. False regimes have come up under the guise of Communism (but truly monarchies without religion), but they were truly supporters of the Capitalist cause (which isn't as much an unjust cause as it is a necessary cause). Without Capitalism, true Communism would never come around.

Marxist-Leninists might say that they disappeared because of rightist agendas of some members of Communist parties. Or they might say that Communism has not died out, but lives on in places such as DPRK (North Korea) and Venezuela or Cuba.

8 0

3 years ago

Read 2 more answers

Heather has lost 30 pounds and kept it off for 6 years. she is currently in the ________ stage of change in regard to weight los

Zielflug [23.3K]

I believe the answer is Termination stage of change in regard to weight loss.
During the termination stage, the transformation is already complete and is very unlikely that heather will revert back to her old habbit.
In behavioral change like this, average people achieved termination stage after making an effort for 24 months or more.

5 0

3 years ago

The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among

natali 33 [55]

Answer:

This statement is FALSE.

Explanation:

This statement is false. For demographics is defined as an area of human sciences whose central objective is the study of a human population, according to statistics, dimensions, structures and distributions. The demographic study is carried out through several factors, such as sex, age, race, and others.

Through demographic data it is possible for governments and institutions to get to know in depth and analyze characteristics of a given population for different purposes, such as market research and policy development.

The definition proposed by the question corresponds to economics and not demographics.

7 0

4 years ago

Comparative advantage emerges because of the presence of a. trade. b. differing opportunity costs. c. marginal benefits that equ

Firdavs [7]

Answer:

my answer is A-trade bc

is the comparative advantage emerged

6 0

4 years ago

Your uncle is about to retire, and he wants to buy an annuity that will provide him with $75,000 of income a year for 20 years,

kolezko [41]

Answer:

It cost $915,166.69

Explanation:

R=75,000

i=j/m, j=0.0525, m=1 - annually

i=0.0525

n=mt

n=20

An=R[1-(1+i)^-n] : i

An=(75,000x[1-(1+0.0525)^-20]) : 0.0525

An=$ 915,166.69

8 0

4 years ago