Question: Why is it important for a company to know its
Why is it important for a company to know its break-even point? What happens to the break-even point if variable cost per unit decreases? If total fixed cost increases?
Answer to relevant QuestionsExplain the difference between calculating the breakeven point in units and in dollars. How can one be used to double-check the other?Explain how a decision to automate a manufacturing facility would likely impact a company’s cost structure and its break-even point.Jasper Company has sales of $185,000 and a break-even sales point of $120,000. Compute Jasper’s margin of safety and its margin of safety ratio.Information for Pueblo Company follows:Determine Pueblo’s (overall) weighted-average contribution marginratio.On the graph presented, match each element to its appropriatedescription.
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