Accounting Principles 12th Edition
Accounting Principles 12th Edition
12th Edition
ISBN: 9781119263111
Author: Kimmel, Kieso Weygandt
Publisher: WILEY
Question
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Chapter 22, Problem 22.6DIE

(a)

To determine

Break-Even Point: The break-even point is a point where total cost incurred are the same as the total revenue earned. At the break-even point the profit will be zero. The break-even point is the point in the business where there is no loss and no gain.

Margin of Safety: The margin of safety is that amount by which the actual value of the sales differs from the break-even sales value. This amount indicates that amount after which the business will reach the sales will reach the break-even point.

To determine: Assuming no change in selling price or costs calculate the break-even points in units, in dollars and margin of safety.

(b)

To determine

Assuming that there is change in selling price the break-even points in units, dollars and margin of safety.

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Chapter 22 Solutions

Accounting Principles 12th Edition

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