Break-even point, The operating level at which the total sales revenue equals the total

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.

View Complete Question

Related Questions in Managerial Accounting

Q : Balancing risk and return What do you

What do you mean by the term balancing risk and return? Explain in brief?

Q : Threats to business comprises Write a

Write a brief note on the things which Threats to business comprises?

Q : Capital account on credit and debit side

List the items that might appear on the debit side and credit side of a partner's fluctuating capital account. Answer: On debit side: Drawing, interest on drawing, c

Q : Characteristics which accounting

What are the key qualities or characteristics which accounting information should possess?

Q : What is Uncontrollable Cost What is

What is Uncontrollable Cost: The cost over which an accountable manager has no persuade.

Q : Duties of Partner The duties of each

The duties of each partner: The partners are beneath a fiduciary duty towards one another to: Render true accounts; Account for private gains; and Refrain from competition with the partnership firm.

Q : Benchmark test The process of testing a

The process of testing a new software program using actual data and comparing the results to the alternative soft wares. The alternative can be new software or the organization's existing system. The test should be examined the software's accuracy and efficiency.

Q : Explain Cash Management Cash Management

Cash Management: Cash Management is the management of cash balances of a concern in such a way as to maximize the accessibility of cash not invested in inventories or fixed assets and to ignore the risk of insolvency. According to Keynes there are thr

Q : Fixed capital of partners Explain the

Explain the term fixed capital of partners? Answer: Partners' capital is state to be fixed if the capital of Partners remains unchanged except in the situation where

Q : Define Job Costing Job Costing : It is

Job Costing: It is an order-specific costing method, utilized in situations where each job is distinct and is executed to the customer's specifications. Job costing includes keeping an account of direct and in-direct costs.

Discover Q & A

Leading Solution Library

Avail More Than 1423807 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1926468
Asked

3,689

Active Tutors

1423807

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment