When is it useful or sometimes necessary to compute the break-even point in terms of sales dollars rather than
units of output?
What will be an ideal response?
For the multiproduct firm, it is convenient to compute the break-even point in terms of sales dollars rather than units
sold. Sales, in effect, become a common denominator associated with a particular product mix. Furthermore, an
outside analyst might not have access to internal unit cost data. He or she may, however, be able to obtain annual
reports for the firm. If the analyst can separate the firm's total costs as identified from its annual reports into their fixed
and variable components, he or she can calculate a general break-even point in sales dollars.
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PDCA stands for ______.
A. Product Development Cycle Analysis B. Plan, Do, Check, Act C. Plan, Do, Check, Analyze D. Please, Do, Check, Answer
________ is the money that remains after the costs of marketing and operating the business are paid.
A. Account receivable B. Net profit C. Consumer residual D. Dividend E. Contribution margin
Which of the following is NOT true about warehouse clubs?
A) They are not full-service stores. B) They often charge their customers with a modest annual membership fee. C) They carry items in bulk. D) They carry a more limited selection of merchandise than that offered by most grocery stores. E) Groceries account for the smallest portion of sales revenue.