1. How does a change in total fixed costs (C) affect the breakeven point?
In XXX given Illustrations 2 XX the fixed XXXX (X) is at XXXX XXXX Breakeven XXXXX (BEV) will be XX units. If I XXXXXXXXX XXXXX fixe XXXX XX XXXX XXXXX XXXXXXX then BEV XXXX increases to 15 units, while at decreasing XXXXX fixed XXXX XX 750 XXX decreases to 9 units.
If C = 1000, and XXXXXXX - XXXXXXXX cost = 90 XXXX BEV = 1000/90 = 12 XXXXX
If X = 1300 XXX revenue - variable XXXX = 90 XXXX XXX = 1300/XX = XX XXXXX
XX C = 750 and revenue -XXXXXXXX cost = XX XXXX BEV = XXX/90 = X units
XXXX all XXXXX that XXXXX is direct XXXXXXXXXXXX between fixed cost XXX revenue i.e. XXXXXXXXX XX directly proportional to the XXXXX Cost (C). XXXXXXXXXX in fixed XXXX XXXXXXXX XXX break even and vice versa.
X. What XXXXXXX XXXX XXX XXXXXXXX XXXX per XXXX (v) approaches XXXXXXX per XXXX (r)? XXX?
XX increases the no. XX units to XX XXXX to XXXXX XXX.
If variable XXXX (v) approached XX XXXXXXX (r) XXXX XXXXXXXXXXXX margin (r-v) XXXX XX decreased.
XXX XX XXXXXXXXX XXXXXXXXXXXX to (r-v) so XXXXXXXX in XXX value of r-v, increase the no, of XXXXX to be sold XX XXXXX BEV.
XXX XXXXXXX,
if C = XXXX, XXX r-v = XX then BEV = XXXX/XX =XX
if C= XXXX, XXX r-v = XX then BEV = 1000/10 = 100
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