Part 1:
Problem 1: What is the role provided by a break-even point and how would you calculate this point?
Problem 2: What are the limitations of using a break-even point and how would you incorporate this point with management strategic planning?
Part 2:
Problem 1: What is the difference between favorable and unfavorable variances and how do you calculate them?
Problem 2: What if a manager in a hospital had in their budget $1,000 difference is unfavorable and should that be investigated?
Problem 3: What if $1,000 difference is favorable and should that be investigated?