<Student’s name>
Question #1
a)
Break-even analysis is important to assess the current state of the enterprise and its dynamics, as well as for the development strategy of the company.
For the definition of concepts such as break-even point and financial headroom is necessary, first of all, to define the fixed and variable costs. These concepts are used in the solution of almost all kinds of administrative tasks in the system "costs - production volume - profit."
Fixed costs do not depend on the quantity produced.
Example: The company leases land. For this land has to pay a rent of $ 100. This cost is formed regardless of the ...