What is the major benefit of Breakeven Analysis? AB A. B. C. OP D. It allows you to know how much you have to sell to breakeven. It allows you to see the effect different methods of changing costs and prices of your products will have on profitability. It allows you to see what will happen if you lower fixed cost. It allows you to see what will happen if you increase variable cost.
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- 10. I B. What is the major benefit of Breakeven Analysis? A. It allows you to know how much you have to sell to breakeven. It allows you to see the effect different methods of changing costs and of your products will have on profitability. C It allows you to see what will happen if you lower fixed cost. It allows you to see what will happen if you increase variable cost. prices 訂Question 2 A seminar was recently attended by the Managing Director of XYZ Manufacturing Company Limited located at Sheffield. The focus of the seminar was "optimising scarce resources utility in a manufacturing setting with particular reference to linear programming". On his return to his base, he called for a meeting with the Management to share his experience from the seminar and the impact this will have on the decision by the Board to produce two major products in the years ahead. A group of external research experts had previously been commissioned and the following represents information from the research carried out by them The expected products are "Best" and "Smart" with expected costs statistics as follows: Best £ £ Smart (3kg@£50/kg) Material costs (5kg@£50/kg) 250 150 Labour costs Machinery time 30 (4 hours @£15/Hr) 60 (4 hours @£10/hr) 40 (2hours @£15/Hr) (5hours@£10/Hr) Other Processing Time 50 The applicable pricing policy is based on total cost of production plus 20%…"In target costing, prices determine costs rather than vice versa." Explain. Question content area bottom Part 1 A. In target costing, managers start with a predatory price. Then they determine how much they can spend in variable and fixed costs to breakeven. Thus, prices essentially determine costs. B. In target costing, managers start with a price that will result in breakeven. They the managers brainstorm to find ways to lower costs without raising the price to earn more profit. Thus, prices essentially determine costs. C. In target costing, managers start with a market price. Then they try to design a product with costs low enough to be profitable at that price. Thus, prices essentially determine costs. D. In target costing, managers start with a cost-plus price. Then they work backwards to determine how much their costs are for production and the markup is on the product. Thus, prices essentially determine costs.
- A decrease in fixed costs will increase the number of units that need to be sold in order to breakeven. Group of answer choices True FalseThe line that begins at the origin on a CVP graph represents total expenses. total fixed expenses. total sales revenues. both the total expenses and the total sales revenues. Which of the following best describes the concept of a "constraint?" Expected future costs that differ among alternatives. None of the items in this list of answers. A benefit foregone by choosing one alternative course over another. The distribution of all products to be sold.Consider a situation in which a firm needs to make a decision regarding the resources to allocate between two products. One product makes a significantly larger contribution margin than the other. How might the contribution margin affect the decision that the firm makes? What if both contribution margins were positive or both were negative? Are there other factors when considering the contribution margin you should look for? What makes the contribution margin positive or negative?
- Differentiate variable cost from fixed cost. Hope you can help me understand it well, I will rate it helpful, just please help me answer my questions precisely, thank you very much!If Promus could make order amounts after realizing demand, what would the expected value of this information be? Use the simulation results to calculate the mean profit of this case to compare with the mean profit of the non-perfect information case. You will need to enter a formula for Sales.For the ERPSim manufacturing game in SAP what should be the prices for 6 flavors of Museli and what should be the sales forecast and loan amount that needs to paid and what should be the amount to be paid for set up time and increasing production capacity? If possible, can you please add a template for loan and price calculator?
- At the breakeven point Select one: O a. Fixed costs will be equal contribution margin minus variable costs O b. Fixed costs will be equal to variable costs C. Sales will be equal to variable costs plus target profit d. Sales will be equal to variable costs minus fixed costs e. Sales will be equal to fixed costs plus zero target profit plus variable costs Clear my choice LU to searchYou decide to increase advertising, you will not change the selling price and variable cost per unit do not change. In this scenario, your breakeven point in units will Group of answer choices: Increase decrease stay the same the answer cannot be determined from the given informationCVP analysis indicates that your start-up will break even with the current sales mix and price levels. You have a target income in mind. What analysis might you perform to assess the likelihood of achieving this income?