Explain the difference between calculating the breakeven point in units and in dollars. How can one be used to double-check the other?
Answer to relevant QuestionsHow does degree of operating leverage help managers predict changes in profit? In general, would you prefer a higher or lower degree of operating leverage?Explain degree of operating leverage and how it relates to fixed cost.Heather Hudson makes stuffed teddy bears. Recent information for her business follows:Selling price per bear ....... $35.00Total fixed cost per month ..... 1,500.00Variable cost per bear ....... 24.00If Heather ...Refer to the information presented in M6-2. How many units must Juniper sell to earn a profit of at least $5,400?Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6, and each clock sells for $24. ...Cove’s Cakes is a local bakery. Price and cost information follows:Price per cake ....... $17.00 Variable cost per cakeIngredients ........ 2.50Direct labor ....... 1.40Overhead (box, etc.) ...
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