Fixed cost = 300000
Contribution margin ratio = (sales - variable cost) / sales
Contribution margin ratio = (10 - 7 ) / 10
Contribution margin ratio = .3
breakeven point = 300000 / .3 = 1000000
Breakeven is when Sales minus Variable Cost minus Fixed Cost = 0 Here we have: (20,000 x 4.00) - (20,000 x 2.50) - FC = 0 80,000 - 50,000 - FC = 0 30,000 - FC = 0 So Fixed Cost = 30,000
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
The financial breakeven point is a more relevant measure than the accounting breakeven point because the accounting breakeven point does not consider the initial investment in the project. With any investment, one has the option to venture into it, or to take a less risky route and invest (in a bond or a stock that would give them a more guaranteed return). Thus an accounting breakeven, considers all cost, except the opportunity cost of the capital invested in project, and this is something that the financial breakeven considers. Financial breakeven point is the point where NPV is greater than or equal to zero: the point where there is economic value added® (a term trademarked by Stem-Stewart). This is because in calculating the financial breakeven, the formula includes the opportunity cost of capital: the initial investment divided by the timeannuity factor at the discount rate (where the discount rate is the opportunity cost of capital).
Shut-down point is when Price equals Minimum Average Variable Cost. At this point the firm is indifferent between producing or shutting down. This is because at the point Total Revenue is equal to Total Variable Cost, so by producing or shutting down, the firm is making a Loss equal to Total Fixed Costs no matter what it chooses to do
Well, If 10 pesos equal one American dollar, 10X100 equals 1,000. So $100 equals 1,000 pesos.
The answer is 4 because you multiply both 48 and 12 by the variable (and considering the variable is x) it would equal: 48=12x then you divide both ides by 12 it would equal 4=x the variable equals 4
4666666.6667
breakeven point
441
There are 1000 metres in one kilometre. Therefore, 300000 kilometres is equal to 300000 x 1000 = 300000000 metres.
The variable 'x' would equal (8-y)/2. The variable 'y' would equal 8-2x.
Breakeven.
Breakeven point = Fixed cost + EBIT / contribution margin ratio Contribution margin ratio = sales price - variable cost Contribution margin ratio = 1 - 0.5 = 0.5 or 50% Breakeven point = 215000 / .5 = 430000
Breakeven is when Sales minus Variable Cost minus Fixed Cost = 0 Here we have: (20,000 x 4.00) - (20,000 x 2.50) - FC = 0 80,000 - 50,000 - FC = 0 30,000 - FC = 0 So Fixed Cost = 30,000
1. Breakeven point = fixed cost/ contribution margin ratio contribution margin ratio: (sales - variable cost)/sales Sales = 20000 * 40 = 800000 Less: Variable cost = 20000 * 10 = 200000 Contribution margin = 600000 Contribution margin ratio = 600000/800000 = .75 Breakeven point in dollars = 120000/.75 = $160000 breakeven point in units = 160000 / 40 = 4000
Breakeven Analysis is the process of categorizing costs of production between variable and fixed components and deriving the level of output at which the sum of these costs, referred to as total costs per unit become equal to sales revenue. The analysis helps to determine the 'Breakenev Point' from this point of equality of sales revenue with total costs. At the breakeven point, the production activity neither generates a profit nor a loss. Breakeven analysis is used in production management and Management Accounting.
== (the double equal sign) is used to compare two values (resulting in true if they are equal, false otherwise). = (a single equal sign) is used to assign a value to a variable.