Revenue, fixed costs, variable costs and contribution margin
September 9th, 2022
NEED HELP IN DEFINING THE QUESTION AND READ THE GRAPHS
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1. Define revenue, fixed cost, variable cost, and contribution margin.
2. What is meant by the term break-even point? Why are managers of a company interested in the break-even point?
3. “A change in fixed costs” in the second cell under break-even analysis. If fixed costs increase, what happens to the break-even level of output? Why?
[Image shown in attachment]
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(See attachment for full problem)