ACCT 500 Saudi Electronic University Value Chain Accounting Discussion


Discuss your answers to the following questions:

Would an increase      in variable costs per unit cause a company?s break-even point to increase      or decrease? Why?

Would an increase      in unit selling price cause a company?s break-even point to increase or      decrease? Why?

An examination of      the accounting records of Alinma Company disclosed a high contribution      margin ratio and production at a level below maximum capacity. Based on      this information, discuss a likely means of improving operating income.      Explain your answer by sharing the calculations needed.

  1. Both Alireza      Company and Jarir Company had the same unit sales, total costs, and      operating income for the current fiscal year; yet, Alireza Company had a      lower break-even point than Jarir Company.Discuss the reason for this      difference in break-even points and provide and example of this      calculation.

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