This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: In a short essay, explain how the break-even point (BE) changes with variables TFC (total fixed ... (Read 99 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
on: Jul 6, 2018
In a short essay, explain how the break-even point (BE) changes with variables TFC (total fixed costs), P (unit price), and VC (variable cost per unit).
 
  What will be an ideal response?

Question 2

In a short essay, explain how managers can use current value for making organizational decisions.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

FergA

  • Sr. Member
  • ****
  • Posts: 352
Reply #1 on: Jul 6, 2018
Answer to Question 1

Answer: According to the equation BE = TFC/(P - VC), when TFC increases, BE, the break-even point, also increases, requiring more units to be sold for the product to make a profit. Increasing P increases the value of the denominator in the equation, which results in the value of BE dropping. Finally, increasing VC decreases the value of the denominator in the equation, which results in the value of BE increasing.

Answer to Question 2

Answer: Current value is calculated by finding the ratio of a company's current assets to its current liabilities. A current ratio that is significantly greater than 2:1 suggests that the company is asset-heavy and is not receiving the best return possible on the assets it has. A current ratio of less than 1:1 suggests that the company has too many liabilities and may soon have trouble meeting its short-term obligations, such as payroll, and paying taxes.


jasdeep_brar

  • Member
  • Posts: 569
Reply 2 on: Jul 6, 2018
Gracias!

amit

  • Member
  • Posts: 364
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

People who have myopia, or nearsightedness, are not able to see objects at a distance but only up close. It occurs when the cornea is either curved too steeply, the eye is too long, or both. This condition is progressive and worsens with time. More than 100 million people in the United States are nearsighted, but only 20% of those are born with the condition. Diet, eye exercise, drug therapy, and corrective lenses can all help manage nearsightedness.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

Did you know?

Since 1988, the CDC has reported a 99% reduction in bacterial meningitis caused by Haemophilus influenzae, due to the introduction of the vaccine against it.

Did you know?

More than 20 million Americans cite use of marijuana within the past 30 days, according to the National Survey on Drug Use and Health (NSDUH). More than 8 million admit to using it almost every day.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Population predictions for 2000–2050, using three different total fertility rates ( Population predictions for 2000–2050, using three different total fertility rates (
Location of point of maximum effort Location of point of maximum effort
Total body water (TBW) Total body water (TBW)
Relations Between Iconic Memory, Short-Term Memory, and Long-Term Memory Relations Between Iconic Memory, Short-Term Memory, and Long-Term Memory
What is the total number of valence electrons in a silicate ion, SiO32-? What is the total number of valence electrons in a silicate ion, SiO32-?
Point Mutations Point Mutations
Video: Electrocardiogram Examination

For a complete list of videos, visit our video library