provide a hypothetical example of multiproduct break even analysis

Q: disadvantages of double declinig method

A: Double declining balance method is a method which is used to record depreciation on assets. Under…

Q: What is operating break-even point?

A: It is point where, company has no profit no loss. At break-even point all fixed costs are recovered.

Q: Explain the importance of the break - even EBIT.

A: A break-even point is the point of sales at which the operating income or the earnings before…

Q: Explain the advantage of modified breakeven analysis over the basic breakeven formula.

A: A break-even analysis is a key calculation that compares the startup costs of a new firm, service,…

Q: Define the term cutoff values?

A: Cut-off values for diagnosis or screening examinations that have constant outcomes (estimated on a…

Q: What is the critical path in the PERT method for network analysis?a. shortest path through the…

A: Critical Path: The critical path can be defined as the order of network activities involved in a…

Q: Investigate the concept of breakeven volume and explain the characteristics drive of BEV.

A: Break even volume is that volume of sales at which there is no profit or loss to the firm.

Q: Provide an example of a “good” externality, that is, one that increases a project’strue NPV.

A: The question is based on the concept of externality in project management. Externality is define as…

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: a. What is the break-even value in Dirhams?

A: Information Provided: Selling price = 70 Variable cost = 30 Advertising costs = 263,069 Rent costs…

Q: What are the requirements of Continuous Compounding?

A: The question is based on the concept compounding of interest rate.

Q: Explain multiproduct break even analysis. What is the assumption on proportions among the quantities…

A: Multi-product break even analysis means that the  determination of the break even point of…

Q: How would an Increase in total fixed costs affect the break-even point and the margin of safety?

A: The break even sales are the sales where business earns no profit no loss during the period.

Q: Difference between weak and semi strong from efficiency.

A: Efficient Market Hypothesis(EMH) states that the price of the share will reflect the information and…

Q: Define crossover rate

A: Crossover over rate helps the company to determine which investment proposal will be beneficial in…

Q: What is the difference between a linear and a nonlinear cost function? Give an example of each type…

A: Cost Function:Cost function represents the basic change comes in the total cost due to the change in…

Q: Explain how to determine the break-even point

A: Break-even: It can be defined as that level of production at which the firm’s total costs fall…

Q: Describe how to calculate aproduct’s break-even point

A: Break-even point is a stage where a company is in state of no profit or no loss. Break-even point…

Q: What and why would be the type of the quantity used in the break even analysis and what would be the…

A: Break even analysis is the analysis of revenue and components of costs to model the relationship of…

Q: List several potential problems with ratio analysis.

A: Ratio analysis is a correlation of details in an organization's financial reports. It is utilized to…

Q: Define the term accelerated cost recovery system (AC RS)?

A: The AC RS is a method of depreciation. It is used for depreciating the property for tax purposes

Q: List three causes of a favorable direct materials price variance.

A: Direct Material:Direct materials are those inputs that are used for manufacturing a product. Price…

Q: What is an outlier? List some possible causes of outliers. How should outliers be handled in cost…

A: Outlier: An outlier is a data point that falls far away from the other points in the scatter diagram…

Q: Explain the process of Equivalence Calculations with Continuous Compounding?

A: Equivalence calculation is that calculation which gives the fix return surety in future in any…

Q: Are large batch sizes preferable to small batch sizes? Explain.

A:

Q: Describe two ways to reduce a complex ABC system of the two ways which has the most merit?

A: Activity based product costing (ABC) : ABC is a costing method in which it initially allocates costs…

Q: Define the term breakeven point.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: illustrate and explain the concept of break even chart analysis

A: The moment at which operating income equals overall cost, i.e. Total cost= Total Revenue, is known…

Q: In using least-squares to estimate the variable and the fixed components in a mixed cost, these two…

A: Least Square method (Linear regression) is a very accurate method for dividing cost into variable…

Q: Discuss the main difference between the single-index model and the Markowitz optimization model.

A: Single Index Model- This article is concerning the quality rating model in political economy. For an…

Q: Explain the advantage of modified breakeven analysis overthe basic breakeven formula.

A: Break-even analysis is a financial calculation that weighs the new company cost, product, or service…

Q: From the standpoint of cost control, why is the FIFO method superior to the weighted-averagemethod?

A: First-In-First-Out (FIFO) Method:   It is a method of managing inventory of an organization. Under a…

Q: Define break-even point

A: Break-even point is defined as the volume of production where the total cost is equal to the total…

Q: Distinguish between Contribution Margin and Break-Even Volume?

A: Contribution margin:   This is the price of a product less all the associated variable cost that…

Q: Which of the following statements is true? Select one: one: a. The most complex of the cost…

A: High-low method: It is the method of estimating the variable cost per unit and the fixed costs by…

Q: Discuss the main and major difference between single index model and Markowitz optimization model.

A: The Single Index Model is an asset pricing model in which the returns on security can be interpreted…

Q: Explain how the unit contribution margin can be used todetermine the unit sales required to break…

A: The contribution per unit indicates the value left after deducting the variable cost from the sale…

Q: Define a nonlinear cost function.

A: Cost Function: Cost function represents the basic change that comes in the total cost due to the…

Q: Analyze a mixed costusing the high-low method.

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: Consider the following information as part of a breakeven analysis:

A: Given:

Q: What is the most effective way of determining the break-even point?

A: Break even point means a point where firm is neither earning profit nor incurring any loss.