Solved

Calculate the Accounting Break-Even Point for the Following Firm: Revenues

Question 114

Essay

Calculate the accounting break-even point for the following firm: revenues of $700,000, $100,000 fixed costs, $75,000 depreciation, 60 percent variable costs, and a 35 percent tax rate.What happens to the break-even if a trade-off is made which increases fixed costs by $30,000 and decreases variable costs to 55 percent of sales?

Correct Answer:

verifed

Verified

blured image = blured image = $437,500
blured image blured image = blured image = $455,556
Summary:...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q16: What is the level of profits for

Q37: In a graphic depiction of accounting break-even

Q59: While sensitivity analysis is forward-looking,scenario analysis attempts

Q109: What is the NPV break-even level of

Q110: Forecasting inconsistencies can be minimized by:<br>A)allowing managers

Q113: Confirm that the percentage change in profits

Q115: Fixed costs including depreciation have increased at

Q116: A video rental store will cost $650,000

Q117: What are two of the factors that

Q118: One characteristic of scenario analysis is that:<br>A)it