Cost behavior and Cost-volume-profit analysis. Cost behavior and Cost-volume-profit analysis
Assuming Gouda is above the break-even point, what will happen for each unit sale?
Cost behavior and Cost-volume-profit analysis
In this discussion, please address the following statements;
1.- Gouda Company and Cheddar Company had the same sales, total costs, and income from operations for the current fiscal year; yet Gouda has a lower break-even point than Cheddar. Explain the reason.
2.- Assuming Gouda is above the break-even point, what will happen for each unit sale? What are the areas that the company should focus on to ensure that they exceed their break-even points on a consistent year-to-year basis?