1. How does a change in total fixed costs (C) affect the breakeven point?
XX XXX XXXXX XXXXXXXXXXXXX X XX XXX fixed XXXX (X) XX at XXXX XXXX XXXXXXXXX XXXXX (XXX) will be XX units. If I increases total fixe cost XX 1300 XXXXX sliders then BEV XXXX XXXXXXXXX XX 15 XXXXX, XXXXX XX decreasing total fixed cost to 750 BEV decreases to 9 units.
XX C = XXXX, and revenue - XXXXXXXX cost = 90 XXXX XXX = XXXX/90 = XX units
XX X = 1300 and XXXXXXX - XXXXXXXX cost = 90 XXXX XXX = 1300/XX = 15 XXXXX
XX X = XXX and revenue -variable cost = 90 XXXX XXX = 750/XX = 9 units
XXXX all shows that XXXXX is direct relationship between fixed XXXX and revenue i.e. breakeven XX directly XXXXXXXXXXXX to the Fixed Cost (X). XXXXXXXXXX in fixed XXXX increase XXX break XXXX and vice XXXXX.
2. XXXX happens when the variable cost XXX unit (v) XXXXXXXXXX revenue XXX unit (r)? XXX?
It XXXXXXXXX the XX. of XXXXX XX XX XXXX XX XXXXX BEV.
XX XXXXXXXX cost (v) approached to XXXXXXX (r) XXXX XXXXXXXXXXXX XXXXXX (r-v) XXXX XX XXXXXXXXX.
BEV is inversely Proportional to (r-v) so decrease in XXX value XX r-v, increase XXX no, XX units XX XX sold to XXXXX BEV.
For example,
XX X = XXXX, and r-v = XX XXXX XXX = XXXX/90 =12
XX C= XXXX, XXX r-v = 10 then BEV = XXXX/10 = 100
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