Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[20 points) Build a general model to find the break-even point if the investor wants a rate of return of at least Y% P=R-E .

image text in transcribed
image text in transcribed
[20 points) Build a general model to find the break-even point if the investor wants a rate of return of at least Y% P=R-E . P = X Sp - (F + V.) . P = X Sp-(F + X .Cp) Profit:P Profits-Revenues - Expenses Revenues: R Expenses: E Revenues = Units sold * Sales Price per unit Units sold: X Price per unit: Sp REX *Sp Expenses = Fixed cost + Variable Cost Variable Cost: VC Fixed Cost: FC E =Vc + FC Variable cost = Cost of production * Units sold Cost of production - Cp VCpx P = X Sp - F-X.C X.Sp - F-X. Cp = 0 X(S) - Cp) = F X= Sp-C [20 points) Build a general model to find the break-even point if the investor wants a rate of return of at least Y% P=R-E . P = X Sp - (F + V.) . P = X Sp-(F + X .Cp) Profit:P Profits-Revenues - Expenses Revenues: R Expenses: E Revenues = Units sold * Sales Price per unit Units sold: X Price per unit: Sp REX *Sp Expenses = Fixed cost + Variable Cost Variable Cost: VC Fixed Cost: FC E =Vc + FC Variable cost = Cost of production * Units sold Cost of production - Cp VCpx P = X Sp - F-X.C X.Sp - F-X. Cp = 0 X(S) - Cp) = F X= Sp-C

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Lean Audit The 20 Keys To World Class Operations A Health Check For Factory And Office

Authors: Joerg Muenzing

1st Edition

1514817829, 978-1514817827

More Books

Students also viewed these Accounting questions