0
What else can I help you with?
Can you calculate the fixed cost variable costs and break-even point for the program suggested in Appendix D?
Calculate the fixed cost, variable costs, and break-even point for the program suggested in Appendix D.
How do you get the break-even point?
Original answer: Break-even = fixed cost/ (price - variable cost)Additional: This equation gives the answer as the number of units of the product.
Why is it important to separate variable and fixed costs?
it is important to separate variable and fixed costs. Another reason it is important to separate these costs is because variable costs are used to determine the contribution margin, and the contribution margin is used to determine the break-even point.
How do you work out break even point?
To work out the break even point you have to do this equation → (fixed cost)÷(selling price−variable cost). For example the fixed cost is $10000, the selling price is $17 and the variable cost is $12. So you would do → (10000)÷(17−12) which would equal $2000.
How do you calculate break even when you only have total sales total variable cost and total fixed cost no unit selling quantity given eg sales 500000 fixed cost 160000 and variable cost 350000?
You cannot. Sales and variable costs must be functions of the units (quantities) sold and produced.
What happens to break even point if sales price and variable cost per unit decrease?
If both the sales price and variable cost per unit decrease, the break-even point will increase. This is because the contribution margin (sales price minus variable cost) per unit decreases, meaning more units must be sold to cover fixed costs. Consequently, a lower contribution margin leads to a higher number of sales needed to reach the break-even point.
What will happen to a company's break even point if the sales price and unit variable cost of its only product increases by the same dollar amount?
the break even increase
What happens to break even point if fixed cost increase and variable cost decrease?
If fixed cost is increased it means more number of units are required to cover fixed cost that's mean breakeven point will increase as well. If variable cost reduces then it means there is increase in contribution margin and contribution margin ratio which means that less number of units will be required to cover fixed cost hence breakeven point will reduce.
How does the break even point change when you change the cost?
The break-even point changes inversely with fixed costs and directly with variable costs. If fixed costs increase, the break-even point rises, meaning more units must be sold to cover expenses. Conversely, if variable costs increase, the break-even point also increases, as each unit contributes less to covering fixed costs. Reducing costs, either fixed or variable, lowers the break-even point, allowing fewer sales to achieve profitability.
What causes the break even point to increase or decrease?
The break-even point increases when fixed costs increase or selling price decreases. It decreases when fixed costs decrease or selling price increases. Changes in variable costs or sales volume can also impact the break-even point.
What are the principles of break even analysis?
To calculate your break even point you need to total your fixed costs and your variable costs (separately) . The equation is fixed costs ÷ (price - variable costs). Variable costs are your costs associated with production. If u produce one additional unit variable cost will increase and fixed costs will not. When you reach your break even point you have covered all if your fixed costs (for the month, for example). All units sold after break even will bring net income for the period since your fixed costs are covered.
How is CVP impacted by changes in fixed and variable costs?
A change in variable cost affects the contribution margin ratio. A change in fixed cost affects the break-even point . An increase in these costs affect the firms profit.
What happens if you add more cells to a circuit?
If the cells are added in series, then the terminal voltage will increase, as would the internal resistance. If they are added in parallel, then the voltage would remain the same as for one cell, but the internal resistance would fall, and the available charge (in ampere hours) would increase.
What are underlying assumptions in break even point analysys?
1- quantity of units produced = quantity of unit sold , so there is no change in invetory . 2- prices will remain fixed. 3- variable cost rate will remain fixed 4- total fixed costs will remain fixed up to maximum manufacuring capacity of the firm
A firm's break-even point will rise if?
A firm's break-even point will rise if its fixed costs increase, as this requires more sales to cover the higher expenses. Additionally, if the selling price per unit decreases, the break-even point will also increase since more units must be sold to cover the same fixed costs. Conversely, an increase in variable costs per unit will also raise the break-even point, requiring more sales to achieve profitability.
How can the temp of a substance remain the same if it is absorbing energy?
The temperature of a substance can remain the same while absorbing energy if it is undergoing a phase change, such as melting or boiling. During a phase change, the absorbed energy is used to break intermolecular bonds rather than increase the kinetic energy of the particles, which keeps the temperature constant.
What would you expect to be the effect of a reduction in variable cost on the break even position and why?
The Break Even Position(B.E.P.) is the point at which your sales cover your variable costs(contribution) and also your fixed costs but render no profits- 0 = Sales-Variable Costs-Fixed Costs If the above equation is satisfied, then the sales value is taken as break even point. So if a reduction in variable expenses occur, the break even point will also reduce.
