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The following figure shows the relationship between operating cash flow and sales volume using the three break-even measures. Please answer to show names of variables
The following figure shows the relationship between operating cash flow and sales volume using the three break-even measures. Please answer to show names of variables in the General Break-Even Expression Operating cash flow ($) Quantity of output or sales volume Financial break-even Cash break-even Accounting break-even (1) What is the meaning of the slope? (5 pts) (2) What is the meaning of the y-intercept (A) on the figures? (5 pts) (3) If a project breaks even on an accounting basis (accounting break-even), what is its operating cash flow? (5 pts) The following figure shows the relationship between operating cash flow and sales volume using the three break-even measures. Please answer to show names of variables in the General Break-Even Expression Operating cash flow ($) Quantity of output or sales volume Financial break-even Cash break-even Accounting break-even (1) What is the meaning of the slope? (5 pts) (2) What is the meaning of the y-intercept (A) on the figures? (5 pts) (3) If a project breaks even on an accounting basis (accounting break-even), what is its operating cash flow? (5 pts)
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