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If sales volume exceeds the break-even point the firm will experience?
an operating profit
Does break even point and break even analysis means the same?
Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.
Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage?
Would the profit change associated with sales changes be larger or smaller if a firm increased its operating leverage?"
Is operating profit margin and profit margin the same?
No. Operating profit margin usually means profit in terms of strict cost and revenues of the firm itself. Actual profit margin includes other, non-firm specific costs, such as payment of debts (which is not part of operation but still a liability of the firm).
A firm break-even point will rise if?
following reasons: 1- Fixed cost increases 2 - Contribution margin reduces 3 - Required profit increases
If sales volume exceeds the break-even point the firm will experience?
an operating profit
How are the break-even point and operating leverage affected by the choice of manufacturing facilities?
A labor-intensive company will have low fixed costs and a correspondingly low break-even point. However, the impact of operating leverage on the firm is small and there will be little magnification of profits as volume increases. A capital-intensive firm, on the other hand, will have a higher break-even point and enjoy the positive influences of operating leverage as volume increases.
Should a firm continue to operate even when total revenue is not covering total cost?
Yes, if the firm is able to cover fixed costs and a portion of variable costs it should continue to operate. If it is not operating, it will still have its fixed costs but will not be able to cover it. So even if a firm is making losses, it is making less of a loss than if it were to temporarily shut down.
How do you say you need to break up with you?
just tell him/her your reasons why you wanna break up. be firm if you really dont want to continue the relationship at all.
What are a firms profit at the break-even point?
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
Does break even point and break even analysis means the same?
Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.
If a firm is losing money in the short run its price is?
between the shut-down point and the break-even point.
You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product If you have developed the following cost-structure information for this com?
You are a hard-working analyst in the office of financial operations for a manufacturing firm that produces a single product. You have developed the following cost-structure information for this company. All of it pertains to an output level of 10 million units. (1) Using this information , find the break-even point in units of output for the firm. ------------------------------------------------- Return on operating assets = 30% Operating asset turnover = 6 times Operating assets = $20 million Degree of opearting = 4.5 times -------------------------------------------------- (2) Define the term financial leverage. Does the firm use financial leverage if preference shares are present in the capital structure. (3) Define the term operating leverage. What type of effect occurs when the firm uses opearting leverage ?
Would you continue to work for a company if you disagreed with the firm's mission statement why or why not?
Would you continue to work for a company if you disagreed with the firm's mission statement
When evaluating the operating efficiency of a firm's managers What ratio would you look at?
When evaluating the operating efficiency of a firm's managers, you would look at the Asset Evaluation Ratio.
How serious is the threat of a firm like Vans?
They are extremely threatening because even though they are dieing out they continue to hold the attention of the teen dempographic.
What is it called when a firm issues periodic reports?
periodic reports of a firm's financial position or operating results.
