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Break-Even Chart
This is a diagrammatic presentation of the relationship among costs, prices, expenses and the sales volume.
A break-even chart expresses revenue and expenses and costs on the vertical scale. The horizontal scale shows volume such may represent units of sales, machine hours or direct labour hours or other appropriate cost drivers.
Break-even chart displaying contribution margin
After you have studied this section, you should be capable to: know the idea of funds flowing by a business in a dynamic situation understand the role of working capital
The following is a summary of a cash book for the year ended 31 April 2012 Payments $ Receipts
Beaver Company (a multi-product firm) produces 5,000 units of Product X each year. Each unit of Product X sells for $8 and has a contribution margin of $5. If Product X is disconti
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Master Designs Company has cash flows for operating activities of $350,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this
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A statement of changes in working capital assists us in locating where such changes took place. In the first example we try to demonstrate the increase or decrease in particular it
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