To determine the break-even point, a firm first needs to calculate the contribution per unit. What does this mean?
What will be an ideal response?
The contribution per unit is the difference between the price the firm charges for a product and the variable costs. This figure is the amount the firm has after paying for fixed costs of production.
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The principle of "matched maturities" in finance refers to:
A) funding long-term assets with long-term sources, and short-term assets with short terms borrowings. B) finding sources of funds with the longest maturity, in order to avoid liquidity crises C) buying marketable securities when demand is high and borrowing short term when demand is low D) using as much short-term financing as possible due to the lower cost of interest
A subagent that has not been specifically empowered by the principal can still create liability for the principal.
a. true b. false