BE-I - Breakeven Analysis Checklist 2 Sp 2011

# BE-I - Breakeven Analysis Checklist 2 Sp 2011 - Community...

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Community College of Philadelphia Marketing/Management Classes Maurice M. Sampson Breakeven Analysis Concept Checklist Understanding Breakeven Concepts – A Checklist One requirement for the successful completion of this course is the understanding of breakeven analysis. Considerable teaching emphasis is placed on this theory. The checklist below has been prepared to aid in determining precisely where a lack in understanding of the terms and calculations associated with breakeven analysis might exist. Once you are confident that you thoroughly understand a listed concept, place a check (√ ) on the line. 1. _____ Understands that breakeven (BE) means revenue equals costs 2. _____ Understands that breakeven means ZERO. 3. _____ Understands that breakeven means money flowing into the firm equals the money flowing out of the firm. 4. _____ Understands that Numbers 1, 2 and 3, above, are the same. 5. _____ Understands that breakeven analysis is a planning and control tool used to project results of future sales performance. 6. _____ Writes and understands the BE formula (BE = FC over SP – VC) 7. _____ Understands that solving the BE formula means subtracting the variable subtracting the variable cost from the selling price and dividing the fixed cost by the result. 8. _____ Understands that BE means BREAKEVEN. 9. _____ Understands that SP means SELLING PRICE. 10. _____ Understands that FC means FIXED COSTS. 11. _____ Understands that fixed costs mean all overhead costs or those expenses a company has whether it produces and sells anything or not. 12.

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## This note was uploaded on 08/30/2011 for the course BUS 121 taught by Professor Staff during the Spring '11 term at Community College of Philadelphia.

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BE-I - Breakeven Analysis Checklist 2 Sp 2011 - Community...

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