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What is the importance of breakeven point

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Reference no: EM133151526

Case - Fly Ash Brick Project: Feasibility Study Using Cvp Analysis

Answer the following questions:

Question 1. Briefly explain the different costs and their behaviour. Classify various expenses given in the case study into fixed cost, variable cost, and initial investment (preferably present each of the costs in separate tables; in the table preferably show the annual fixed cost)

Question 2. Briefly explain the breakeven point. What is the importance of breakeven point in decision-making? Find the breakeven point using the data given in the case study.

Question 3. Briefly explain "Target Income." How many bricks need to be sold to earn a target income of Rs. 2.8 million per year?

Question 4. Briefly explain the return on equity (ROE). How do volumes affect the return on equity? Illustrate your answer using data from the case study.

Question 5. What advice can be given to the owners

Attachment:- Feasibility Study Using Cvp Analysis.rar

Reference no: EM133151526

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