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the point at which total cost lines under the two alternatives intersect each other. Cost indifference point is calculated as under: - Difference in fixed costs/ Difference in PV ratio.

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Does being at the Earning Per share in difference point mean you are always indifferent between two financing plans?

Being at the Earnings Per Share (EPS) indifference point means that the two financing plans yield the same EPS at that specific level of sales or output. However, this does not imply that one would always be indifferent between the two plans outside of that point. The risk, cost structure, and other factors associated with each financing option will influence the decision, making it essential to consider a broader range of scenarios beyond just the EPS at the indifference point.


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 is The break even point in voyage estimation?

The break even point refers to the point wherebye the voyage freight rate equates to the cost of running the ship!


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.


What is the break even point?

The point where Total Sales = Total Cost

Related Questions

What is the tangent between a budget constraint and an indifference curve on an indifference map?

It is the equilibrium point of utility maximization.


What is the relationship between indifference curve and budget constraint?

The tangency point of Indifference curve and budget line shows the Marginal Rate of Substitution between X and Y commodities. Consumer's equilibrium is achieved at that point.


What is point of indifference?

lack of interest or concern


What is the difference between a point and a line and a plane?

explain the differences between a point and a line and a plant


What is the ebit-eps indifference point?

The EBIT-EPS indifference point is a calculation used in determining optimal capital structures. What that means is firms typically finance their operations with two primary means, equity and debt. Back to the indifference point, algebraically and graphically when the earnings per share for debt and equity financing alternatives are equal, you have the EBIT-EPS indifference point. Put another way a firm can finance their operations at the same cost, with either debt or equity, at the indifference point. EPS (debt financing) = EPS (equity financing)


What is the ebit eps indifference point?

The EBIT-EPS indifference point is a calculation used in determining optimal capital structures. What that means is firms typically finance their operations with two primary means, equity and debt. Back to the indifference point, algebraically and graphically when the earnings per share for debt and equity financing alternatives are equal, you have the EBIT-EPS indifference point. Put another way a firm can finance their operations at the same cost, with either debt or equity, at the indifference point. EPS (debt financing) = EPS (equity financing)


What are indifference curves explain it using a graph?

o Indifference curves are curves that have a negative slope and are bowed inward. Each point on the line has the same exact util value. In other words, a person would be the same amount of "happy" at each point on the indifference curve. There are an infinite amount of indifference curves on every graph. G2


Why does an indifference curve never meet?

No indifference curve can intersect because all points on indifference curve are ranked equally prefered and ranked either or less more prefered than every other point on the curve.rt


What is the point of Musee des Beaux Arts?

The point of it is to show humanity's prevailing indifference towards individual tradegy


What are the differences between Linux and NetWare?

They are no way similar, so there is no point in comparison.


How is consumer utility maximised using indifference curve and budget line?

Consumer utility is maximized at the point where the budget line is tangent to the highest possible indifference curve. This tangency point represents the optimal combination of goods that a consumer can afford, balancing their preferences (indifference curve) with their budget constraint (budget line). At this point, the marginal rate of substitution between the two goods equals the ratio of their prices, ensuring that the consumer is getting the most satisfaction possible given their financial limitations. Thus, the consumer achieves maximum utility by selecting a consumption bundle that lies on both the budget line and the highest attainable indifference curve.


Why indifference curves cannot intersect each other?

ntersection of two indifference curves representing different levels of satisfaction is a logical contradiction. It would mean that indifference curves representing different levels of satisfaction are showing the same level of satisfaction at the point of intersection or contact. We can prove this property of indifference curves through contradiction. Suppose, two indifference curves IC1 and 1C2 meet (Fig (a)), intersect (Fig. (b)) or touch (Fig. (c)) each other at point 'A' in Fig. Point 'C' is taken just above point 'B', such that it contains same amount of commodity 'X' and more amount of commodity' Y'. Consider points 'B' and 'A' on IC1. Consumer is indifferent between these points, as both lie on the same indifference curve IC. Further, points 'A' and 'C lie on the same indifference curve IC implying same level of satisfaction to the consumer. Now, by the assumption of transitivity, points 'B' and 'C' yield same level of satisfaction to the consumer. But, point 'C' lies on a higher indifference curve having more amount of commodity' Y'. It must be preferred to point 'B' by the assumption of non-satiety. Further, intersection of two indifference curves also violates the assumption of positive marginal utilities of the two commodity. In Fig., intersection of IC1 and IC2 means additional amount of BC has zero utility. Therefore, indifference curves can never intersect or touch each other.