Briefly explain what is a breakeven chart with the aid of a diagram.

Briefly, explain what is a breakeven chart with the aid of a diagram.

1. a) Explain the following terms. Give an example and sketch out a simple graph to
illustrate the nature of relationships between costs and activity level for each term.
i) Fixed costs
(3 marks)
ii) Step-fixed costs
(3 marks)
iii) Variable costs
(3 marks)
b) Briefly explain what is a breakeven chart with the aid of a diagram.
(6 marks)
(15 marks )
c) Belle Company accumulates the following data concerning the sales of
thumbdrives that sell for $20 each. For the coming year, management expects
fixed costs to total $220,000 and variable costs to be $9 per unit.
i. Compute break-even point in units using the mathematical equation.
(2½ marks)
ii. Compute break-even point in dollars using the contribution margin (CM) ratio.
(3½ marks)
iii. Compute the margin of safety percentage assuming actual sales are $500,000.
(1½ marks)
iv. Compute the sales required in dollars to earn net income of $165,000.
(2½ marks)

(10 marks)

---

 

PLACE THIS ORDER OR A SIMILAR ORDER WITH STUDENT HOMEWORKS TODAY AND GET AN AMAZING DISCOUNT

The post Briefly explain what is a breakeven chart with the aid of a diagram. appeared first on STUDENT HOMEWORKS .

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.