Break-even point indicates the number of units to be sold by a company to meet all its expenses and make zero profit. It is calculated by dividing fixed cost of production divided by the contribution per unit. Where, contribution per unit is the difference between selling price per unit minus variable cost associated with one unit. Referring to the excel sheet, Pringly’s break-even point at the first scenario is 142857.1429 units while in the second 147058.8235 units are required to break even (Walther, 2010).
The units required to be sold so as that the company can achieve a profit ...
Break-Even Point Case Studies Samples For Students
6 samples of this type
WowEssays.com paper writer service proudly presents to you an open-access catalog of Break-Even Point Case Studies aimed to help struggling students tackle their writing challenges. In a practical sense, each Break-Even Point Case Study sample presented here may be a guide that walks you through the essential phases of the writing process and showcases how to compose an academic work that hits the mark. Besides, if you need more visionary help, these examples could give you a nudge toward an original Break-Even Point Case Study topic or inspire a novice approach to a threadbare issue.
In case this is not enough to satisfy the thirst for efficient writing help, you can request customized assistance in the form of a model Case Study on Break-Even Point crafted by an expert from scratch and tailored to your specific requirements. Be it a plain 2-page paper or a profound, extended piece, our writers specialized in Break-Even Point and related topics will deliver it within the pre-set period. Buy cheap essays or research papers now!
Management Accounting
Step 1:
Question 1:
The total variable cost for the company comprises of manufacturing costs and sales and administrative cost. Accounting both, the total variable costs for the firm was calculated at $10 per unit
Question 2:
The total production costs for any organization is bifurcated as fixed costs and variable costs. Important to note, while the variable costs and output carry a direct and proportional relationship, fixed cost is not related to output level and remains constant throughout. In other words, while the variable costs increase in proportion to the increase in output level, fixed cost does not change and ...
Part I
Answer 1
It is a static budget in since the planner had already set the expenses together with the expected revenues. The fees each student was to pay had already been determined and accounted for. Each student was required to pay, the estimated grants to expect and the expenses that would go to salaries, purchase of equipment and other miscellaneous expenses.
Answer 2
The total revenues for the 120 students less grants was 802,567-(50,000+10,000+5,000+10,000) =727,000. Total revenue per student727,000/120=6058.3333. The total revenue less grants for the 100 students was: 681, ...
HIRE A WRITER
Just from $10/page
Part One:
a) Calculate the Weighted Average Cost of Capital
WACC: Weight of Debt* Cost of Debt(1-Tax rate) + Weight of Equity* Cost of Equity
WACC:[( 200000/400000)* 0.09(1-.22)] + [(200000/400000)* .15]
WACC: 0.0351+ .0300
WACC: 6.51%
*WACC that is also known as Cost of Capital will be used further to discount the cash flows of the company.
b)Calculation of Capital Allowance and Tax Payable on each project:
Project A:
Tax depreciation
Capital Allowance and tax liability
*Assuming that business loss for Year 1 will not be carry-forward to be offset from Year 2 profit and also there is no minimum ...
- Scott Cook and Tom Proulx collected what is known as Primary Data. According to Professor Hossain from the website Spirkle Express Documents (2012), primary data, or raw data, is data that is collected through the process of investigation. Primary data is unfiltered and pertains directly to the field under investigation. In the course of their investigation, Scott and Tom became intimately aware of what their customers needed based on what is actually useful to them. Instead of creating a product that created a need, Scott and Tom created something that already is needed, that being personal finance management. I believe ...
Want Beverages strengths
Want Beverages is a beverage company based in Burlington, Ontario owned by Bill and Angela Moffat. Even though the company owners could clearly picture where they want their company to be in the next few years, they are not sure of the means of making it get there. Strengths are those attributes that will enable the firm to increase its sales to a level that will ensure success in achieving its long-term goals. The firm operates in a dynamic industry, which requires it to position itself to achieve a competitive edge over other competitors (Fredrick and Gary, 2011).
The Moffats have represented various ...
