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Illustrate the procedure of break-even analysis based on NPW?
The break-even analysis determines the point of output where the total cost is equal to total revenue. It determines the required revenue to cover the total variable cost and fixed cost.
The break-even point can be calculated using the succeeding formula.
Step by step
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- Show that the same selection is made with: a. The PW Method b. The IRR method c. The ERR method d. Would leasing crane A for nine years, assuming the same costs per year as for three years, be preferred over your present selection? (ϵ = MARR = 15%)Identify IFRS standards that ordinary production company would need to apply while adopting IFRS for the first timeThe Waste Not Want Not ([WN]²) company makes compressed soap tablets that can be "rehydrated" for use by the consumer. [WN]? has estimated fixed costs of $125,000 per month for a production volume of up to 400,000 tablets per month. The tablets are sold for $1.25 per tablet. At full capacity (400,000 tablets), the total variable cost is $180,000 per month. Note: Total variable cost = variable cost per unit X number of units produced.