Question

Proofs: how to derive Accounting break-even quantity

Proofs: how to derive Accounting break-even quantity

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The break even quantity is the number of units a company should sell, such that the costs of the company should be equal to it's profit.

The break even quantity formula is :

Let q be the quantity,

Total revenue = total costs,

BEQ * Price per unit = Fixed costs + variable costs per unit * BEQ

BEQ = Fixed costs/ (Price - variable Costs)

If the company doesn't sell the number of units according to the break even quantity then it will not be able to cover it's costs.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity...
Consider a project with the following data: accounting break-even quantity = 24,240 units; cash break-even quantity = 16,000 units; life = three years; fixed costs = $160,000; variable costs = $60 per unit; required return = 15 percent. Ignoring the effect of taxes, find the financial break-even quantity.
Consider a project with the following data: Accounting break-even quantity = 13,800 units; Cash break-even quantity...
Consider a project with the following data: Accounting break-even quantity = 13,800 units; Cash break-even quantity = 10,500 units; Life = 5 years; Fixed costs = $125,000; Variable costs = $32 per unit; Required return = 14 percent. Ignoring the effect of taxes, find the financial break-even quantity. (HINT: Use the appropriate break even formulas to identify the unknown variables in the financial breakeven calculation).
Consider a project with the following data: accounting break-even quantity = 30,229 units; cash break-even quantity...
Consider a project with the following data: accounting break-even quantity = 30,229 units; cash break-even quantity = 17,933 units; life = 9 years; fixed costs = $205,385; variable costs = $21 per unit; required return = 12 percent; depreciation = straight line. Ignoring the effect of taxes, what is the financial break-even quantity?
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity...
Consider a project with the following data: accounting break-even quantity = 5,500 units; cash break-even quantity = 5,000 units; life = six years; fixed costs = $170,000; variable costs = $26 per unit; required return = 8 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Consider a project with the following data: accounting break-even quantity = 5,400 units; cash break-even quantity...
Consider a project with the following data: accounting break-even quantity = 5,400 units; cash break-even quantity = 5,000 units; life = five years; fixed costs = $200,000; variable costs = $38 per unit; required return = 10 percent. Ignoring the effect of taxes, find the financial break-even quantity. (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.)
Use the following information and the break even formulas to determine fixed costs, depreciation and operating...
Use the following information and the break even formulas to determine fixed costs, depreciation and operating cash flow. Accounting Break even quantity              13,000 units     Cash Break even quantity                            7,000 units Financial Break even quantity                    18,000 units     Unit Price                                                        60.00 Variable cost per unit                                  46.00 Fixed costs _____________________ Depreciation ____________________ Operating Cash Flow _____________
). How is break even point determined
). How is break even point determined
If a project is at the accounting break-even point with fixed costs of $100,000, the fixed...
If a project is at the accounting break-even point with fixed costs of $100,000, the fixed costs would need to _____ to make the project have a positive NPV. A. Decrease B. Increase C. Do nothing because it is already has a positive NPV.
4 Inference proofs Use laws of equivalence and inference rules to show how you can derive...
4 Inference proofs Use laws of equivalence and inference rules to show how you can derive the conclusions from the given premises. Be sure to cite the rule used at each line and the line numbers of the hypotheses used for each rule. a) Givens: 1 a∧b 2 c → ¬a 3 c∨d Conclusion: d b) Givens 1 p→(q∧r) 2 ¬r Conclusion ¬p
Break Even Analysis Consider the concept of break even analysis and target income.  What is your understanding...
Break Even Analysis Consider the concept of break even analysis and target income.  What is your understanding of Break Even Analysis and Target Income. Use your own words. How do these analytical tools relate to product pricing and cost management? Provide specific hypothetical, numerical examples of how Break- Even Analysis can impact pricing of any company’s products. Pricing Why would a company seek to position themselves as low price or high price item in the market place?  How might this affect sales...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT