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
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).
When average variable costs equal to the average marginal cost, the average variable cost will be at the minimum point. i.e. lowest cost
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.
Breakeven output is the level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss. It indicates the minimum amount of goods or services a business must sell to cover its fixed and variable expenses. Understanding breakeven output helps businesses set sales targets and evaluate the financial viability of their operations. It is calculated using the formula: Breakeven Output = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).
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 in financial management refers to the point at which total revenues equal total costs, resulting in neither profit nor loss. It is a critical metric for businesses to determine the minimum sales volume needed to cover fixed and variable expenses. Understanding the breakeven point helps in setting sales targets and pricing strategies, as well as assessing the viability of projects or products. It is typically calculated using the formula: Breakeven Point (in units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit).
There are 1000 metres in one kilometre. Therefore, 300000 kilometres is equal to 300000 x 1000 = 300000000 metres.
breakeven point
441
The variable 'x' would equal (8-y)/2. The variable 'y' would equal 8-2x.
Breakeven.
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 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
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