If you no longer held the belief that the negative managerial scenarial theory w

Question

If you no longer held the belief that the negative managerial scenarial theory was an accurate reflection of reality, what other beliefs would you need to change as a consequence?
The breakeven point is the point when the profit of the company is equal to $0. It is the point when sales equals fixed costs and variable costs. There are two different methods that can be used to calculate the breakeven point, the equation method and the contribution margin method.

The equation method formula is as follows:
Sales = Variable Costs + Fixed Costs + $0

Explanation / Answer

the other beliefs are- Risk Adjustment & Strategy implementation through risk alleviation and confinement; - Systematic risk management and handling in compliance with objectives, philosophy and risk scenario; - Risk treatment in accordance with risk strategy and planning; - Operational risk management and implementation of risk policy and planning; - Reporting framework and measurement, monitoring;......

contribution margin method to calculate break even point

Break-even point in number of sales dollars is calculated using the following formula:

Break-even Sales Dollars =Fixed cost / cm ratio

CM ratio = [(SP pu - VC pu)/SP pu]*100

break-even point in unit sales using the formula method.

Cont pu = SP pu - VC pu

Break-even point in unit sales

= FC/COnt pu

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