Uses for break-even analysis
Explain what are the several uses for break-even analysis?
Expert
These type of analysis allows the firm to define at what level of operations it will break even (earn zero profit) and to discover the relationship between costs, profits and volume. It provide helps to the management at current costs of products so many numbers of units must be sold to get the cost of producing the product.
For Example: On producing a product if you spend $200 and its selling price is $20 then to recover the cost of product you must sale 10 units.
It helps the management to determine how much of units to be sold to get desired profit on product such as: if in the above example you want to earn $20 profit then add it to it's cost of $200 and it will become $220 now you need to earn profit of this $20 you need to sale 11 items of product.
The baseball manager, whose players decline to bunt occasionally, rather always swinging for the homeruns, faces a: (i) Second-mover drawback. (ii) Prisoner’s dilemma. (iii) Principal-agent problem. (iv) Grim strategy. Can so
Suppose an economy is in equilibrium condition. Its consumption function is C = 300 +0.8Y and investment is 700 find out its national income.
Equity of fairness is an ambiguous idea, in part since people’s personal qualities can vary greatly. Conversely, that policymakers should treat people equally when they are roughly identical in the characteristics thought relevant for government policies is exte
Economic profits within a competitive industry are signals which: (i) attract new firms into the industry. (ii) hinder innovation of new technologies. (iii) encourage inefficiency in existing firms. (iv) business conditions are deteriorating. (v) pric
Hybrid Roses is the merely florist in 60 miles of Presidio, Texas. When total fixed costs (for example, rent and utilities) are $9 per hour, such profit-maximizing monopolist will generate an output of: (1) two dozen roses per hour. (
Describe the steps taken in estimating N.I. by product/ value added technique? Answer: A) Classify all production units: Locate
The output of RoboMaids consequent to the point where demand has unitary price elasticity is approximately: (i) 2,000 robots weekly. (ii) 4,000 robots monthly. (iii) 6,000 robots monthly. (iv) 10,000 robots monthly. (v) 13,000 robots monthly.
Decreasing average production costs needs raising the size of a firm when the raised production encounters economies of: (i) Growth. (ii) Coordination. (iii) Growth. (iv) Scale. (v) Scope. Find out the right answer from the above o
The removal of exploitation of labor (or wage payments beneath the value to the society of each and every individual worker’s productive contribution) is automatic when business decision makers: (1) Should set wages via collective bargaining agreements by labor
Excise taxes upon cigarettes are most effective during reducing: (1) smokers' discretionary income for other goods. (2) cigarette production. (3) cigarette companies' profits. (4) consumption of snuff and chewing tobacco. Discover Q & A Leading Solution Library Avail More Than 1452526 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1952125 Asked 3,689 Active Tutors 1452526 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
18,76,764
1952125 Asked
3,689
Active Tutors
1452526
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!