Question

Give your opinion based upon the numbers as to whether production seems to be budgeted properly, and whether the corporation can make an adequate profit above breakeven levels

Answer 1

The production level needs to be budgeted accurately as this is the main strategy which is essential for the success of the business. The corporation cannot make adequate on the breakeven level as this is no profit, no loss situation.

Step-by-step explanation:

The production level is the basis for sales. If the production level is not accurately estimated then there will be over of under production problems to the business. The over production will result in excess cost to the company and under production will result in lesser profit and sales. The breakeven level is the no profit no loss situation. This is the situation where company earns money equal to its cost and expenses and nothing is saved by the company as profit.