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?

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