Question

A manager does a break-even analysis and finds that his value for BE, the break-even point,...

A manager does a break-even analysis and finds that his value for BE, the break-even point, has decreased over time. Which of the following could be responsible for this event?

VC has decreased.

P has increased.

P has decreased.

TFC has increased.

Homework Answers

Answer #2

VC has decreased.

VC has decreased means a decrease in the Break-even point.


Explanation:

A manager does a break-even analysis and finds that his value for BE, the break-even point, has decreased over time. The decreases in VC which is the variable cost could be responsible for this event. This is because decreasing both the variable and the fixed costs of each product increases the contribution margin of products sold which increases the total revenue thus decreasing the break-even point.

answered by: anonymous
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
30 In a fashion design company, the operations manager aims to calculate break even point. The...
30 In a fashion design company, the operations manager aims to calculate break even point. The analysis shows that total expected fixed cost is $300,000, estimated selling price is $25 per unit. The forecasting shows that they are likely to sell 50,000 units in a year. Calculate the lowest variable cost in this scenario? $19 $200 $375 $20 $30 29. Which of the following best describes the phase in which the project team identifies the activities, activity duration times, and...
1. (T/F) In a break-even analysis problem, if the unit variable cost is decreased, the break-even...
1. (T/F) In a break-even analysis problem, if the unit variable cost is decreased, the break-even point decreases. 2. (T/F) The choice of which process structure to select is based on two main characteristics: volume and degree of customization. 3. Which of the following basic types of process structures is one which equipment, personnel, and work processes that perform the same function are grouped together? a.Project b.Assembly line c.Continuous process d.There is no such layout e.Workcenter 4. You are hired...
In Marketing, the break-even point refers to the revenues necessary to cover a company's total amount...
In Marketing, the break-even point refers to the revenues necessary to cover a company's total amount of fixed and variable expenses during a specified period of time. The revenues could be stated in dollars and in units (i.e., the number of units of products sold). Thus, in a break-even pricing analysis, firms can calculate how many units of products need to be sold at a given price to break even. You may also read the discussion about target return pricing...
Project #1 - Break Even Analysis A simple break even analysis asks the question: How many...
Project #1 - Break Even Analysis A simple break even analysis asks the question: How many books do you have to sell in order to make back your initial investment, otherwise known as breaking even. We make this calculation by looking at the total income, or gross sales, and equating it to the sum of the fixed costs, variable costs and profit from the items. Breaking even means that you go from negative profit to positive profit and the actual...
Q97. If a firm has a break-even point of 20,000 units and the contribution margin on...
Q97. If a firm has a break-even point of 20,000 units and the contribution margin on the firm's single product is $4.00 per unit, what will the firm's EBIT (operating profit) be at sales of 30,000 units? Q98A. A company currently sells for $100 a product that has a variable cost per unit of $48. Fixed costs are $910,000 and not expected to change in the next period. If the company desires to reduce its break-even point by 1,250 units,...
Break Even Analysis Instructions: Find the Break Even point (in units) using the following financial statement....
Break Even Analysis Instructions: Find the Break Even point (in units) using the following financial statement. Assume rent, insurance, and loan interest are fixed expenses. The other expenses are variable, including the cost of goods sold. SAMPLE CELL PHONE COMPANY PROFIT AND LOSS STATEMENT August 2015 Operating Revenue: Product Sales $12,000.00 $500*24 phones Service Sales $3,000.00 $125*24 service plans Total Operating Revenue $15,000.00 Operating Expenses: Cost of Goods Sold $7,000.00 $291.67*24 phones Gross Profit $8,000.00 Operating Expenses: Rent $1,500.00 Insurance...
​(​Break-even analysis​) You have developed the income statement in the popup​ window, ___ ​, for the...
​(​Break-even analysis​) You have developed the income statement in the popup​ window, ___ ​, for the Hugo Boss Corporation. It represents the most recent​ year's operations, which ended yesterday. Your supervisor in the​ controller's office has just handed you a memorandum asking for written responses to the following​ questions: a. What is the​ firm's break-even point in sales​ dollars? b. If sales should increase by 40% percent, by what percent would earnings before taxes​ (and net​ income) increase? Sales 51,090,139...
(​Break-even analysis​) ​, for the Hugo Boss Corporation. It represents the most recent​ year's operations, which...
(​Break-even analysis​) ​, for the Hugo Boss Corporation. It represents the most recent​ year's operations, which ended yesterday. Your supervisor in the​ controller's office has just handed you a memorandum asking for written responses to the following​ questions: a. What is the​ firm's break-even point in sales​ dollars? b. If sales should increase by 30 ​percent, by what percent would earnings before taxes​ (and net​ income) increase? Sales ​$51,137,061    Variable costs (20,413,000) Revenue before fixed costs ​$30,724,061    Fixed costs (10,313,000)...
​(​Break-even analysis​) You have developed the income statement in the popup​ window, LOADING...​, for the Hugo...
​(​Break-even analysis​) You have developed the income statement in the popup​ window, LOADING...​, for the Hugo Boss Corporation. It represents the most recent​ year's operations, which ended yesterday. Your supervisor in the​ controller's office has just handed you a memorandum asking for written responses to the following​ questions: Sales ​$50,124,176    Variable costs (25,546,000) Revenue before fixed costs 24,578,176    Fixed costs (13,006,000) EBIT ​$11,572,176    Interest expense (1,148,942) Earnings before taxes ​$10,423,234    Taxes at 35% (3,648,132) Net income $6,775,102   a. What is...
1. In terms of break-even analysis, which of the following is true? a. All else equal,...
1. In terms of break-even analysis, which of the following is true? a. All else equal, an increase in fixed costs will increase the break-even quantity. b. All else equal, a decrease in variable costs will increase the break-even quantity. c. All else equal, an increase in the selling price will increase the break-even quantity. d. All else equal, a decrease in the selling price will decrease the break-even quantity. 2. Firms Haley and Laura are identical except for their...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT