Explain break-even pricing
What will be an ideal response?
Break-even pricing (target return pricing) refers to setting price to break even on the costs of making and marketing a product, or setting price to make a target return. Target return pricing uses the concept of a break-even chart, which shows the total cost and total revenue expected at different sales volume levels.
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The current balance sheet of Handyman Inc reports total assets of $20 million, total liabilities of $2 million, and owners' equity of $18 million. Handyman Inc is considering several financing possibilities in order to expand operations. What is the additional amount that Handyman Inc can borrow and not exceed a debt to equity ratio of 0.3?
a. $5.4 million b. $3.4 million c. $5.5 million d. $4.0 million
Early advocates of security-price research now recognize there are limitations to this research for use in choosing the best accounting policies and evaluating the economic consequences of alternative accounting policies on security prices. Which of the following is not a reason for these limitations?
a. The public-good nature of accounting information b. The existence of free riders c. The resultant market failure in terms of optimal resource allocation d. The use of historical costing distorts financial statement amounts
Multicultural teams bring richness to the organization because of their potential to innovate, knowledge of diverse communities and related markets, as well as an attention to culturally sensitive client services.
a. True b. False
When an agent is allowed to delegate duties to other agents, the other agents are subagents who assist the agent
a. True b. False Indicate whether the statement is true or false