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Test Break-even point
Agenda
QUESTION 1: WHAT IS THE BREAK-EVEN POINT?
It is an indicator that shows the cash available to the business
It is an indicator that shows when your income covers your expenses
QUESTION 2: WHAT IS THE BREAK-EVEN POINT FOR?
Avoid economic uncertainty
Plan, optimize and manage more efficiently your expenses, both fixed and variable
Know in real time if you have losses or profits
All of the above
QUESTION 3: WHAT VARIABLES ARE TAKEN INTO ACCOUNT TO CALCULATE THE BREAK-EVEN POINT?
Fixed costs, variable cost per unit and selling price per unit
Fixed costs and unit selling price
Sales revenue and variable cost per unit
Variable costs per unit and selling price per unit
QUESTION 4: HOW DO WE KNOW HOW MUCH MONEY WE NEED TO BRING IN TO BREAK EVEN?
Make an estimate of the total we need according to the contribution margin
Multiply the break-even point result by the unit price
QUESTION 5: WHAT IS THE CONTRIBUTION MARGIN?
It is the sum of the selling price and its production cost
It is the difference between the selling price and its production cost
QUESTION 6: WHAT IS THE MOST EFFECTIVE VARIABLE IF WE WANT TO CHANGE THE BREAK-EVEN POINT QUICKLY?
Variable cost
Fixed costs
The selling price
None of the above
QUESTION 7: WHAT DOES A SMALL CONTRIBUTION MARGIN IMPLY?
That the business can cover fixed and variable expenses and is not in jeopardy
That any variation in fixed or variable expenses may represent a risk for the business
QUESTION 8: WHAT CAN YOU DO TO REACH YOUR BREAK-EVEN POINT?
Decrease variable costs and increase fixed costs
Increase your contribution margin by raising the price of your products
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