What will be the revenue generated at the break-even point?

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: Based on the cost and revenue structure on the income statement, what was NUBD's break- even point…

A: The question is based on the concept of Financial Management.

Q: What does the short fall (below budgeted expense) in depreciation imply?

A: Depreciation connects the expense of utilizing a tangible item to the benefit obtained throughout…

Q: When are credits increases? When are credits decreases?

A:

Q: Discuss the following components of break-even analysis: fixed costs, variable and semi-variable…

A: Break-even point: It is the point at which the contribution margin earned on sales is equal to fixed…

Q: Explain what a sales mix is and how changes in the sales mix affect the break-even point.

A: A sales mix is ratio that shows various products and services which compose the entire sales volume.…

Q: state the limitations of the payback pe

A: Answer : The payback period is the quantity of time needed for cash inflows generated by a project…

Q: What are the disadvantages of cutting expenses/costs and utilising trade credit insurance, when it…

A: Answer: Trade Credit Insurance is the methods that is applied by the company to protect its debts…

Q: Can we compute the IRR for each option without knowing the revenue figure? Why?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: You are trying to determine the financial break-even size for the follo

A: Financial Break-Even =QF= [EAC + FC(1 – TC) – Depreciation(TC)] / [(P – VC)(1 – TC)] EAC=Equivalent…

Q: What is the break-even point in unit sales?

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: How is the payback period determined?

A:

Q: If a firm's current revenues are less than its current variable costs. Explain.

A: Revenues are the amount received from sale of goods and services in the business. Variable costs are…

Q: how would an increase in selling price per unit affect the break-even point and the margin of…

A: Break even point is the point where the entity is earning no profit and loss. Its contribution does…

Q: How do you calculate the break-even point of sales?

A: Break even point of sales is the point at which there is no profit or no loss for the business.

Q: What is meant by the term payback period? How is the payback period determined? How can the payback…

A: Meaning: The payback period is the time required to earn back the amount invested in a particular…

Q: Define payback period.

A: Capital investment analysis: Capital investment analysis is the process of decision making, planning…

Q: What does it mean when residual income is zero?

A: Meaning of Residual Income Residual income is the income left after paying all the expenses and…

Q: True or false Amortization is the spreading out of a cost over a period of time  ?

A: Cost refers to the amount incurred by the entity over a particular item of expense, asset or…

Q: What does the financial breakeven point shows?

A: A breakeven point is a situation of no loss no profit. The breakeven point is generally calculated…

Q: what is payback period

A: Capital Budgeting: It is the planning process used to determine whether an organization invests in a…

Q: Why is the calculation to determine the target profit considered a variation of the break even…

A: Target Profit:   It is the desired amount of profit that a company expects to achieve by the end of…

Q: Analyse the diagram and following inter related concepts of break-even analysis. A. Break-even point…

A: Break Even Analysis: It is  the point  where  total cost is equal to  revenue  and It  determine the…

Q: What is the break-even sales increase? Interpret.

A: The company would be defining the sales after considering the estimated revenues. All those revenues…

Q: What is the reason that makes net profit margin increases and decreases?

A: What is the reason that makes net profit margin increases and decreases?

Q: What is the process of consideration of the payback period?

A: Payback period It computes the required time to recover back the project’s investment by way of…

Q: What is the present breakeven point in revenues?

A:

Q: What formula do you use to calculate the payback period?

A: Capital budgeting is a process to determine the worth of the project in which the company wants to…

Q: What are the Relationship between Yield and Time?

A: Yield refers to the measurement of returns of an investment in a period of time. It measures the…

Q: How can we determine the Break-Even Resale Value?

A: How to determine the Break -Even Resale Value?

Q: Which of the following transactions will not result in an increase in revenues?

A: In finance revenue increases when a sale takes place or when a transaction adds to the top line/…

Q: How is the payback period is calculated?

A: Payback period is the amount or length of time taken by an investment to recover its cost.

Q: How does targeted profit enter into the break-even units equation?

A: Every organisation desires to attain certain target profit.  Therefore the organisation makes an…

Q: What keeps plotted revenue data from falling on a straight line in a break-even analysis?

A: Revenue data do not fall on a straight line when plotted in a graph in a break-even analysis because…

Q: What are the shortcomings of the payback period?

A: Payback period: The payback period assesses the time period required to recover the initial…

Q: How does an increase in the income rate affect the breakeven point?

A: Break-even sales is the dollar amount of revenue at which a business earns a profit of zero i.e. No…

Q: What is meant by the term payback period?

A: The Payback Period helps to determine the extent of time required to recoup the initial cash outlay…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…

Q: what will be the company's break-even point in units?

A: Break-even point in units is the number of units at which there is no…

Q: What is the break-even point in sales dollars?

A: Break even point is the point in sales. That is, the level of sales which when achieved by a…

Q: What are the disadvantages of cutting expenses and costs , when it comes to working capital and…

A: Working Capital Working Capital is treated as one of the important element of the business entity…