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What is the total revenue at break even point if Ace corporation's variable costs are equal to 43 percent of sales revenue and their fixed costs per month are 600000?
Revenue at BREAK EVEN point is $0.00
What is break even point?
The break-even point, or BEP, is the point where revenue and expenses or cost are equal. It is when an individual has broken even and there is no net gain or loss.
An example of a case where a cost and a revenue function do not have a break-even point.?
A break-even point occurs where total costs equal total revenues. An example where this does not happen is if a company's fixed costs are excessively high compared to its revenue potential, such as a luxury yacht manufacturer producing only a few units per year. If the revenue generated from sales never reaches the high fixed costs, the cost and revenue functions will not intersect, resulting in no break-even point.
What is it called when the expenses and the revenue are equal so there is no profit or loss?
That is called a Break Even Point
The difference between the current sales revenue and the sales at the break even point is called the?
margin of safety
How can a graph be used to determine the break-even point?
Draw graphs of cost per item and revenue per item. In general, the first graph will start above the second but the second will have a steeper slope. As a result, the revenue per item may cross the cost graph and that is the break-even point.
How do you calculate break even point?
1) By drawing up the Break-even chart and determine the intersection point between the Total revenue and Total cost curve. 2) Using the break even quantity formula = Fixed cost / per unit Contribution ( to find break even in $, you simply use the above result and times it with the selling price.)
What are the advantages and disadvantages of break even?
Disadvantages of break even analysis includes: * These are the assumptions mentioned above such as Sales=Stock or Total Revenue and Total Cost functions are linear. * The model is static, it cannot account for changes in environment.
How do i calculate the Break-even point in units and in dollars?
To calculate the break-even point in units, use the formula: Break-even Point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). This gives you the number of units that must be sold to cover all fixed and variable costs. To find the break-even point in dollars, multiply the break-even point in units by the selling price per unit: Break-even Point (dollars) = Break-even Point (units) × Selling Price per Unit. This indicates the total revenue needed to reach the break-even point.
What are the advantages and disadvantages of Break Even Analysis?
Disadvantages of break even analysis includes: * These are the assumptions mentioned above such as Sales=Stock or Total Revenue and Total Cost functions are linear. * The model is static, it cannot account for changes in environment.
How many displays will have to be sold in order to break even if I have a budget of 50000 and I will make a revenue of 72.85 per display sold?
687 units
What is a BEP?
A BEP is a break-even point, the point at which total costs equal total revenue and the organization neither makes a profit or a loss.
