Author Question: Basic break-even analysis typically assumes that (Read 125 times)

berenicecastro · **on:** Dec 3, 2019

Question 1

Which of the following costs would be incurred even if no units were produced?
◦ purchasing costs
◦ raw material costs
◦ direct labour costs
◦ transportation costs
◦ building rental costs

Question 2

Basic break-even analysis typically assumes that
◦ costs increase in direct proportion to the volume of production, while revenues increase at a decreasing rate as production volume increases because of the need to give quantity discounts.
◦ variable costs and revenues increase in direct proportion to the volume of production.
◦ both costs and revenues are made up of fixed and variable portions.
◦ revenues increase in direct proportion to the volume of production, while costs increase at a decreasing rate as production volume increases.
◦ All of the above are assumptions in the basic break-even model.

fwbard · **Reply #1 on:** Dec 3, 2019

A FREE account is required to view all solutions!

Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.

Answer Preview

Only 32% of students answer this correctly