All categories

3 years ago

Select the correct statement regarding break-even point analysis.

Business

1 answer:

svetoff [14.1K]3 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

A firm’s statement of values requires a lot of pruning. There are many acceptable values, but to be effective, the list must be

Galina-37 [17]

Answer:

Culture.

Explanation:

A firm’s statement of values requires a lot of pruning. There are many acceptable values, but to be effective, the list must be short. Executives choose the most important values. Therefore, the clue to Culture is in what is chosen.

Companies recruit candidates who are most likely to fit their culture. Studies have found that a good fit between a candidate's personality and the company's culture leads to better retention. Companies can also use hiring decisions and training to maintain their culture.

6 0

3 years ago

Two ways in which best bank can adapt to the challenges of the macro environment

cupoosta [38]

Answer:

Mergers or Information Management

Explanation:

Mergers-In order to respond to certain challenges, businesses may choose to merge with another business. The new business will have a larger market share than either of the original businesses did.

Information management -All changes lead to new information that needs to be distributed to all the relevant parties.

Information must be managed efficiently and a system must be in place so that the relevant staff can easily access it.

Information must be protected and kept secure to protect the company's intellectual property.

7 0

2 years ago

Determine which of the following statements is correct regarding the relationship of ending inventory and beginning inventory.

antiseptic1488 [7]

The ending inventory of the previous period is the beginning inventory of the current period.

Beginning inventory is the amount of a product. A commercial enterprise has in stock at the start of an accounting length which includes a month or 12 months. due to the fact each accounting length connects to the subsequent, the beginning inventory of one length will be similar to the ending inventory of the previous.

Beginning inventory, or opening inventory, is your inventory cost at the beginning of an accounting duration. For that reason, finishing inventory, or last inventory is the cost of the stock at the top of an accounting duration.

Ending inventory is the value of goods nevertheless available for sale and held via a business enterprise at the end of an accounting length. The dollar amount of ending stock may be calculated by the usage of multiple valuation techniques.

Learn more about Beginning inventory here: brainly.com/question/24868116

#SPJ4

6 0

2 years ago

Purposes of calculating the variances in a cash Budget

Vitek1552 [10]

Variances allow the business owner to supervise their business better by taking well-versed decisions based on how the business really performed against the budgeted performance. Additionally, it also highlights reasons or different causes for the disparity in the projected income or expenses.

3 0

3 years ago

Grant Corporation is looking to purchase a building costing $900,000 by paying $300,000 cash on the purchase date, and agreeing

Kazeer [188]

Answer:

hsggsgtsgg hdhwovxgwivogf get zf66#(8 5578£+#8 k35792y6728 77 --(828)51&&#8'

8 0

2 years ago