Apr 18th, 2015
Studypool Tutor
University of Phoenix
Course: Business and Management
Price: $15 USD

Tutor description

Word Count: 624
Showing Page: 1/3
FIN 200 WK 7 DAY 4 Problems11. Assuming that all other factors remain unchanged, determine how a firmsbreakeven point is affected by each of the following: The break-even point measures the necessary amountof sales needed in order to cover expenses (fixed and variable) and earn a net income of $0. Therefore,any decrease in sales or increase in expenses will raise the BE point and any increase in sales anddecrease in expenses will lower the BE point. The formula is written:BE Pt (Units) = (FC)/(P-VC)BE Pt (Sales) = (FC)/(CM/P)where: FC = Total Fixed CostsP = Sale Price Per UnitVC = Variable Cost Per UnitCM = Contribution Margin (=P-VC)a. The firm finds it necessary to reduce the price per unit because ofcompetitive conditions in the market. Increase, the company will have to sell more units in order tocompensate for the price reduction.b. The firms direct labor

Review from student

Studypool Student
" excellent work as always thanks for the help "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors