When expenses and revenues are equal, this is known as the break-even point or BEP. To determine break-even, an examination of fixed and variable costs (expenses) in relationship to revenues is necessary.
Part 1: Calculate the break-even point for the toy company under each of the two different scenarios using a spreadsheet program such as Excel. Be sure to apply the appropriate accounting process to determine the break-even points. Part 2: Recommend which option, based on the scenarios for the company, that you would select using … Read more