--%>
Assignment Help - homework help

Break-even point

The operating level at which the total sales revenue equals the total cost. Total sale revenue is equal to the price per unit times the number of units sold. Total cost equals total variable cost, the number of units sold in time the variable cost per unit and the total fixed cost. Break-even can be calculated either in terms of units sold or the sales revenue. To find the break- even in units, divides fixed costs by the contribution  margin per unit. To find the break-even sale revenue, divide the fixed cost by the contribution margin ratio.

 

   Related Questions in Managerial Accounting

  • Q : Define Variance Variance : The rate,

    Variance: The rate, amount, extent, or degree of change, or the divergence from a preferred state or characteristic.

    		•
  • Q : Explain Performance Measurement

    Performance Measurement: A means of computing effectiveness, efficiency, and outcomes. A balanced performance measurement score-card comprises financial and non-financial measures focusing on the quality, cycle-time, and price. The performance measure

    		•
  • Q : Provision of management accounting

    What do you mean by the term provision of management accounting information?

    		•
  • Q : Working areas of the Finance department

    Write a short note on the main working areas of the Finance department?

    		•
  • Q : Annual report A company's annual report

      A company's annual report is the single most important way for it to convey itself to potential investors. As such, it should be no surprise tha

    		•
  • Q : Explain Value-Added Activity

    Value-Added Activity: An activity which is judged to contribute to customer value or gratify an organizational requirement. The characteristic "value-added" reflects a belief that the activity can’t be removed without decreasing

    		•
  • Q : Explain Process Value Analysis Process

    Process Value Analysis: Tools and methods for studying processes via customer value analysis. Its objective is to recognize opportunities for lasting enhancement in the performance of an association. It offers an in-depth review of wo

    		•
  • Q : Reliability-Accounting information What

    What do you mean by the term Reliability which is accounting information?

    		•
  • Q : What is Direct Cost Direct Cost : The

    Direct Cost: The cost of resources directly used by an activity. The direct costs are assigned to actions by direct drawing of units of resources used by individual actions. A cost which is particularly recognized with a single cost o

    		•
  • Q : Management accounting as an information

    Explain Management accounting as an information system in brief?

    		•