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Which one of the following describes the break-even point? O It is the point where total sales equal total variable plus total fixed costs. O
Which one of the following describes the break-even point? O It is the point where total sales equal total variable plus total fixed costs. O It is the point where the contribution margin equals zero. O It is the point where total variable costs equal total fixed costs. It is the point where total sales equal total fixed costs.In a sell or process further decision, ( management should process further as long as the incremental revenues from additional processing are greater than the incremental costs. O the basic decision rule is: process further if the total processing costs exceeds the incremental revenue. O it is better to process further rather than sell now if the sales price increases. O the allocation of joint product costs is important and relevant.CurrentAttempt in Progre Crane's Coffee can sell all the units it can produce of either latte or cappuccino but not both. Latte has a unit contribution margin of $39 and takes three machine hours to make and cappuccino has a unit contribution margin of $28 and takes two machine hours to make. There are 1200 machine hours available to manufacture a product. What should Crane's do? O Make latte which creates $11 more profit per unit than cappuccino does. O Make cappuccino which creates $1 more profit per constraint then latte does. O Make cappuccino because more units can be made and sold than latte. O The same total profits exists regardless of which product is made.Sheffield Co. is considering purchasing a machine that will produce annual savings of $21000 at the end of the year. Sheffield requires a 10%% rate of return and the asset has a 6-year useful life. What is the maximum Sheffield would be willing to pay for this machine? Present Value of Annuity of 1 Period 10% 6 4.355 Present Value of 1 Period 10% 6 0.564 O $59220 O $91455 $126000 O $71064
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