example problem – break even point
TRANSCRIPT
![Page 1: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/1.jpg)
EXAMPLE PROBLEM – BREAK EVEN POINT
![Page 2: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/2.jpg)
SOLUTION
![Page 3: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/3.jpg)
SALES UNITS
![Page 4: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/4.jpg)
SOLUTION
![Page 5: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/5.jpg)
COMPARISON PLANS
![Page 6: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/6.jpg)
SOLUTION
![Page 7: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/7.jpg)
BREAK EVEN
![Page 8: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/8.jpg)
SOLUTION
![Page 9: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/9.jpg)
OPERATING LEVERAGE
![Page 10: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/10.jpg)
SOLUTION
![Page 11: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/11.jpg)
DOL
![Page 12: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/12.jpg)
SOLUTION
![Page 13: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/13.jpg)
EXPECTED LEVEL OF SALES
![Page 14: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/14.jpg)
SOLUTION
![Page 15: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/15.jpg)
EXPECTED VALUE OF PROFITS
![Page 16: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/16.jpg)
SOLUTION
![Page 17: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/17.jpg)
EXTERNAL FUNDS NEEDED
![Page 18: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/18.jpg)
SOLUTION
![Page 19: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/19.jpg)
EXTERNAL FINANCING NEEDED
![Page 20: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/20.jpg)
SOLUTION
![Page 21: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/21.jpg)
WHICH PLAN IS LESS COSTLY?
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SOLUTION
![Page 23: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/23.jpg)
EARNINGS AFTER TAXES
![Page 24: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/24.jpg)
SOLUTION
![Page 25: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/25.jpg)
EARNINGS AFTER TAXES
![Page 26: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/26.jpg)
SOLUTION
![Page 27: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/27.jpg)
ANALYSIS EXPECTED RETURN
![Page 28: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/28.jpg)
SOLUTION
![Page 29: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/29.jpg)
BEGINNING INVENTORY
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SOLUTION
![Page 31: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/31.jpg)
AVERAGE COLLECTION PERIOD
![Page 32: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/32.jpg)
SOLUTION
![Page 33: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/33.jpg)
AVERAGE PERIOD
![Page 34: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/34.jpg)
SOLUTION
![Page 35: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/35.jpg)
CREDIT SALES PER DAY
![Page 36: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/36.jpg)
SOLUTION
![Page 37: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/37.jpg)
CREDIT SALES
![Page 38: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/38.jpg)
SOLUTION
![Page 39: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/39.jpg)
AVERAGE INVENTORY UNITS
![Page 40: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/40.jpg)
SOLUTION
![Page 41: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/41.jpg)
TOTAL COST OF INVENTORY
![Page 42: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/42.jpg)
SOLUTION
![Page 43: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/43.jpg)
COMPARISON BY YEARS
![Page 44: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/44.jpg)
SOLUTION
![Page 45: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/45.jpg)
COMPUTE NOT TAKING CASH DISCOUNT
![Page 46: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/46.jpg)
SOLUTION
![Page 47: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/47.jpg)
BORROWING FUNDS?
![Page 48: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/48.jpg)
SOLUTION
![Page 49: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/49.jpg)
EFFECTIVE RATE OF INTEREST
![Page 50: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/50.jpg)
SOLUTION
![Page 51: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/51.jpg)
DISCOUNTED LOAN
![Page 52: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/52.jpg)
SOLUTION
![Page 53: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/53.jpg)
DOLLAR COST OF LOAN
![Page 54: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/54.jpg)
SOLUTION
![Page 55: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/55.jpg)
CASH FLOW
![Page 56: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/56.jpg)
SOLUTION
![Page 57: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/57.jpg)
COMPENSATING BALANCE
![Page 58: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/58.jpg)
SOLUTION
![Page 59: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/59.jpg)
COMPENSATING BALANCE
![Page 60: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/60.jpg)
SOLUTION
![Page 61: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/61.jpg)
DISCOUNTED INTEREST
![Page 62: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/62.jpg)
SOLUTION
![Page 63: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/63.jpg)
EFFECTIVE INTEREST
![Page 64: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/64.jpg)
SOLUTION
![Page 65: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/65.jpg)
COST OF NOT TAKING CASH DISCOUNT
![Page 66: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/66.jpg)
SOLUTION
![Page 67: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/67.jpg)
BORROW FUNDS AND TAKE DISCOUNT
![Page 68: EXAMPLE PROBLEM – BREAK EVEN POINT](https://reader035.vdocuments.net/reader035/viewer/2022081503/62a25f9b1520f92e190d8548/html5/thumbnails/68.jpg)
SOLUTION