How realistic is your potential venture? Do you think you would be able to break even in each of the projected five years? How risky is your venture (use the margin of safety to help answer this question). Do you think your target profits are achievable?
Answer to relevant QuestionsDefine break-even point. Why is the break-even point important to managers? “Break-even analysis isn’t very useful to a company because companies need to do more than break even to survive in the long run.” Explain why you agree or disagree with this statement. Use the information from the Northern Cruiseline Data Set. If Northern Cruiseline sells 10,000 dinner cruises, compute the margin of safety a. in units (dinner cruise tickets). b. in sales dollars. c. as a percentage of ...Owner Shan Lo is considering franchising her Happy Wok restaurant concept. She believes people will pay $5 for a large bowl of noodles. Variable costs are $1.50 a bowl. Lo estimates monthly fixed costs for franchisees at ...Arlan Braun admired his wife’s success at selling scarves at local craft shows (E7-26A), so he decided to make two types of plant stands to sell at the shows. Arlan makes twig stands from twigs he collects from a ...
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