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Finance: Break-even point, dependent and independent etc.

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1. Would you please show us the calculation of following problem for breakeven point below? Suppose that a company has fixed costs of $150,000 and variable costs of $7.5 per unit. What is the break-even point if the selling price is $12.5 per unit?

2. Would you please state what is the distinction between studying math's and statistics. Why do you need to study math first to enroll a statistics course

3. Why do you need to make a distinction between independent and dependent variables? When do you think that the distinction is particularly relevant? Please consider a business related example to discuss the above questions.

4. The operating break-even point of a business can be defined in the level of sales (either units or dollars). Would you please tell us in details the formula for estimating the operating break-even point of a company in units level.

5. Different MBA programs may have different course syllabus. In such cases, how valuable is an MBA degree without the ability to identify and calculate the cost of a company's capital, its return on investment, gross margin percentage, break-even point, or what percent of a population would be willing to buy its product? Please explain in details the importance of understanding these economic terms for a MBA student.

6. The weight of a cut of beef (independent variable = w [for weight]) may affect the overall price (dependent variable = p [for price]).
So, for example, while independent variable p may be $2 per pound, w will influence the total value of p
1. When W = 4.0 lbs, thus p = $8
2. When W = 3.0 lbs, p will equal $6
How the meat size and price can be considered as independent and dependent measures?

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Solution Summary

The problems deals with topics under finance and accounting: Break-even point analysis, linear regression, etc.

Solution provided by:
Chidi Ngene, M. Sc.
Education
  • B. Sc., University of Nigeria
  • M. Sc., London South Bank University
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