Reference no: EM133033979
1: Explain what the break- even point is and why a business would use break -even analysis?
2: If cost are higher than the revenue, is the business making a profit loss. Explain if true or false?
3: What is contribution and how is it calculated?
4: If the average variable cost per unit is $7, and the average selling price per unit is $19 , what is the contribution per unit ?
5: What is the break-even formula?
6: If the average variable cost per unit is 3, the average selling price is $15 and fixed cost are $25,000 , what is the break-even output in units and the break-even sales Revenue?
7: Explain the margin of safety,how it is calculated and what it means to a business?
8: Compare at least one strength and one limitation of using break-even analysis?
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What is the break-even formula
: 1: Explain what the break- even point is and why a business would use break -even analysis?
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