Break Even

Which one is not included in the Break Even formula?

• variable costs per unit
• total fixed costs
• selling price per unit
• cost price per unit

What does break even point show?

• where a business is neither making a profit or loss
• how many items to make
• how much profit they're making
• where a business has more fixed costs than variable

What assumption does this statement say "Break even is 54 units"?

• if we sell 55 we aren't making a profit

• if we sell 54 we begin to make a profit

• if we sell 55 we begin to make a profit

• if we sell 54 we are not yet at break even point

How is break even point measures?

• dollars
• loss
• profit
• items

Which one is an example of a fixed cost?

• resources
• materials
• temporary wages
• rates

Define variable costs.

• costs only related to making the product
• overhead costs
• combined costs
• costs that include marketing

When a business has made enough money to pay its costs and begin to make a profit, it has reached its

• break-even point
• variable-cost margin
• fixed cost
• selling price

Some business costs are classified as fixed costs because they

• must be paid within a set time
• don't change when sales go up or down
• are unpredictable and must be estimated
• cost all businesses the same amount

Most businesses receive the bulk of their income from

• dividends
• sales revenue
• return on investment
• capital

A business that does not reach break-even will

• go bankrupt
• have profit and loss
• lose money
• need to relocate