This topic contains a solution. Click here to go to the answer

Author Question: In a short essay, explain how the break-even point (BE) changes with variables TFC (total fixed ... (Read 87 times)

jasdeep_brar

  • Hero Member
  • *****
  • Posts: 569
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
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
Great answer, keep it coming :)


ultraflyy23

  • Member
  • Posts: 312
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Astigmatism is the most common vision problem. It may accompany nearsightedness or farsightedness. It is usually caused by an irregularly shaped cornea, but sometimes it is the result of an irregularly shaped lens. Either type can be corrected by eyeglasses, contact lenses, or refractive surgery.

Did you know?

Common abbreviations that cause medication errors include U (unit), mg (milligram), QD (every day), SC (subcutaneous), TIW (three times per week), D/C (discharge or discontinue), HS (at bedtime or "hours of sleep"), cc (cubic centimeters), and AU (each ear).

Did you know?

The modern decimal position system was the invention of the Hindus (around 800 AD), involving the placing of numerals to indicate their value (units, tens, hundreds, and so on).

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

For a complete list of videos, visit our video library