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Q: The breakeven point is the point at which the?

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yes

Point Z

end point

Definition: a tangent is a line that intersects a circle at exactly one point, the point of intersection is the point of contact or the point of tangency. a tangent is a line that intersects a circle at exactly one point, the point of intersection is the (point of contact) or the **point of tangency**.

The melting point or boiling point ...................

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Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.

The Formula of Breakeven point (in units)= Fixed Cost / Contribution per unit

Formula for Breakeven point: Breakeven point = Fixed Cost / Contribution margin ratio Contribution margin ratio = Sales / contribution margin Contribution margin = sales - variable cost

breakeven point will decrease

breakeven point (units) = fixed costs/contribution contribution = selling price - variable costs per unit

decrease <--------WRONG!!!!! The operating breakeven point will remain unchanged.

breakeven point

breaking even in integers

Increase in selling price reduces the breakeven point because due to increase in price contribution margin ratio also increases.

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).

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.

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