This weeks assignment is broken down into three sections - a breakeven calculation, a multiple choice question and an essay. Your essay should be at least two pages in length, 12 point font, double spaced.
Please complete question A, B and C below. Please show all of your work.
Breakeven Analysis:
A. Calculate the break-even point in quantity from the following information;
Brandon's home health care agency is considering a new product with a fixed cost of $2,000, a charge per unit of $150, and a variable cost of $100.
Please show all of your work.
B. The breakeven point occurs where:
A. total variable costs and total revenue intersect
B. total revenue outpaces total avoidable fixed costs
C. total costs and total revenue intersect
D. total fixed costs and total revenue intersect
E. total profit margin and total costs intersect
C. Define cost behavior. Identify and explain the five general types of cost behavior.