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Question - What is Budgeting Capital; Cash Budget; Operations Budget; Peruetual Budgeting; Pro Forma Financial Statements?
Distinguish between managerial and financial accounting.
Distinguish between fixed and variable costs.
The equation method begins by expressing the income statement as follows. At the break-even point, profit is equal to zero.Sales - Total variable cost - Total fixed cost = Profit$36N - $24N - $60,000 = 0$12N = $60,000N = $60,000/$12 = 5,000 Units.
If $36.00 dollars is the unit cost and $24.00 is the Variable cost per unit $60,000 is the fixed cost
And the example shows how to break even which means no profit and not lost. Please try to find out how many units must be sold to reach a $75,000 dollar profit.
Define standards as used in the budgeting process and give a detailed example as part of your explanation
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