Explain the limitations of using a break-even point

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Reference no: EM1345314

Part 1

What is the role provided by a break-even point and how would you calculate this point?
What are the limitations of using a break-even point and how would you incorporate this point with management strategic planning?

Part 2
What is the difference between favorable and unfavorable variances and how do you calculate them?
What if a manger in a hospital had in their budget $1,000 difference is unfavorable and should that be investigated?
What if $1,000 difference is favorable and should that be investigated?

Reference no: EM1345314

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