Question

Please consider that regional airline and a furniture manufacture each generate annual revenue of $120 million and earn net income of $10 million. Please discuss which company you believe probably has the higher breakeven point and explain the rational for your answer.

Answer 1

The regional aircraft will presumably have a higher break-even point the original investment point than a furniture maker in light of the fact that the majority of a carrier's expenses are fixed . It is imperative to take note of that despite the fact that the two organizations report indistinguishable income and total compensation figures, their equal the initial investment focuses will probably contrast fundamentally due to contrasts in their cost structures.