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Financial Discussion Questions

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Breakeven analysis is used to break down the cost per unit into its variable and fixed components. The price minus the variable costs gives the amount that will be available from a sale to either contribute to paying for fixed costs or contribute to the company's profit. When this relationship is established, it can be used to determine the number of units that need to be sold to meet the company's goals, or what price at a given volume needs to be charged to cover costs. If the expected volume and price are already known, then breakeven analysis can show whether or not a project will be profitable in the short and long run.

An automobile company and a utility company have very large fixed costs. However, an electrical company will sell many units at a very standard price. An automobile will sell fewer units at a wide range of prices, not all of which are perfectly determinable. The utility company will have less risk associated with leverage than a an automobile company because the per unit cost will be smaller and the likelihood of recovering the amount of money needed to service the debt is greater.

The breakeven point for a low-debt project is lower than that of a high-debt project because the debt service represents a fixed cost. The same holds true for a low-capital project, the fixed cost is lower and requires the contribution margin of fewer product sales are required to cover the fixed cost than if the project requi

. . .
tion with various publics, or groups of people that can have an effect on how whether or not the company succeeds. "We talk with them, and use their feedback to improve our product or service, and more importantly, to change the way we do our business in order to benefit them" (Miyamoto). Societal and organizational public relations work on two different levels of interaction. Social alignment is an effort to reduce conflict between an organization and the society in which it lives. At the most basic level, this involves complying with laws and regulations to avoid punitive action by the government. With some extra effort, the company can identify the general trends in society to "show that they care" by encouraging employees to volunteer for social programs or exceeding expectations in lessening the environmental impact of operations. At the highest level the company would be at the forefront of debates about societal improvement and would be avoiding future regulation by anticipating them and correcting the problem before the public at large became upset. Organizational public relations shapes the interaction of the company with individuals of the publics which deal directly with the organization. This generally inv
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Some common words found in the essay are:
, Pizza Hut, Miyamoto Societal, Shack Benny, Public Relations, Exchange Commission, Selling Price, Variable Costs, public relations, Fixed Costs, Net Profit, fixed costs, organizational public, fixed cost, organizational public relations, variable costs, company's goals, believe company, societal function public, utility company, debt service, 8u =, function public relations, company's web site,
Approximate Word count = 1659
Approximate Pages = 7 (250 words per page)

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