BREAK EVEN ANALYSIS Break-even is the point at which a product or service stops costing money to produce and sell‚ and starts generating a profit for your business. This means sales have reached sufficient volume to cover the variable and fixed costs of producing and distributing your product. [Type the document subtitle] KOMAL BHILARE ROLL NO: 85 2013 DEFINITION Break Even is: •the sales point at which the Company neither makes profit nor suffers loss‚ or •sales level where fixed
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NEW YORK UNIVERSITY Leonard N. Stern School of Business Final Exam Version C C10.0002 Principles of Managerial Accounting Spring 2004 Answer all questions of this examination in the exam booklet provided. Points Distribution: Part A Multiple Choice 54 points Part B Question 1 20 Question 2 20 Question 3 6 46 Total
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Chapter 8: Cost Estimation Strategic Role of Cost Estimation * Cost Estimationthe development of a well-defined relationship b/t a cost object and its cost drivers for the purpose of predicting the cost * Facilitates strategic mgmt is 2 ways * Helps predict future costs * Helps identify key cost drivers for a cost object and which driver is most useful * Using Cost Estimation to Predict future costs * Strategic mgmt requires accurate estimates for the
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they can fit together only in the correct manner Deciding how to arrange raw materials inventory within a warehouse Receiving raw materials into the warehouse 5. Wesley’s income statement is as follows: Sales (10‚000 units) $150‚000 Less variable costs - 48‚000 Contribution margin $102‚000 Less fixed costs - 24‚000 Net income $ 78‚000 What is the unit contribution margin? $10.20 $ 7.20 $ 4.80 $12.00 6. Sparrow Company sells three different products that are similar‚ but are
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cashflow88.com/decisiones/decisiones.html ivelez@unitecnologica.edu.co nachovelez@gmail.com Cartagena 7/16/2010 Financial and Ratio Analysis. Vélez 1 Operating Leverage Financial and Ratio Analysis. Vélez 7/16/2010 2 Variable Costing Q * USP – Q * (UVC +UVE) – FC – FE = EBIT • Operating leverage is the degree to which a firm uses fixed costs in its operations. The higher the relative fixed costs (% of total costs)‚ the higher the firm’s degree of operating leverage
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bounce was 30 inches and the standard deviation was ¾ inches. What is the chance of getting a “fast” standard ball? T otal no. of observations N = 100 Mean‚μ = 30inches Standard deviation‚ σ=3/4 inches=0.75 inches Suppose ’x’ is the normal variable=32 inches 4. Explain
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Week 2: Assignment from the Textbook Ex. 20.1 Listed below are nine technical accounting terms introduced in this chapter: Variable costs Relevant range Contribution margin Break-even point Fixed costs Semivariable costs Economies of scale Sales mix Unit contribution margin Each of the following statements may (or may not) describe one of these technical terms. For each statement‚ indicate the accounting
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per unit increases as total production volume increases. 1-2 Total variable costs change in response to changes in the volume of production. 1-3 The mixed cost per unit is constant throughout the relevant range of activity. 1-4 Fixed costs per unit decrease as production levels decrease. 1-5 A method used to separate mixed costs into fixed and variable components is called the high-low method. 1-6 The variable cost per unit is assumed to be constant within a particular relevant
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B) identifying which costs are variable and which costs are fixed. C) calculation of the degree of operating leverage for the company. D) estimating how many products will have to be sold to make a decent profit. Answer: B Diff: 1 Terms: cost-volume-profit (CVP) analysis Objective: 1 AACSB: Reflective thinking 3) Cost-volume-profit analysis assumes all of the following EXCEPT: A) all costs are variable or fixed B) units manufactured equal units sold C) total variable costs remain the same over the
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product costs‚ regardless weather they are variable or fixed. The cost of a unit of product under absorption costing method consists of direct materials‚direct laborand both variable and fixed overhead. Variable costing is a costing system under which those costs of production that vary with output are treated as product costs. This would usually include direct materials‚direct laborand variable portion of manufacturing overhead. 6-2 Variable costing treats variable and fixed selling and administrative
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