Break-even Point Unit Quiz

What does the break even point show?

• Where a business is neither making a profit nor a loss.

• How much profit they are making.

• How many items to make.

• Where a buiness has more fixed costs than variable costs.

Costs classified as fixed ...

• change with the number of units sold.

• stay the same regardless of number of units sold.

• vary from month to month.

• are the same for all similar businesses.

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

• If we sell 55 units we are not making a profit.

• If we sell 54 units we begin to make a profit.

• If we sell 55 units we begin to make a profit.

• If we sell 54 units we are losing money.

Units sold __________ the break-even point will generate a __________ for the business.

• near, loss

• above, profit

• above, loss

• below, profit

Two of these formulas are correct for working out the break-even point. Which two

• 
  

  $\frac{Fixed\ Costs}{PRICE-Var\ Cost\ }$

• $Total\ Costs\ -\ Fixed\ Costs\ x\ Variable\ Costs\ per\ unit$

• $P\times X\ =\ FC\ +\ VC\times X$
  

• $\frac{Contribution\ M\ per\ unit}{FC}$

If the average variable costs £10, average selling price is £25 and fixed costs are £60,000, then what is the break-even point output in units?

• 5000

• 7000

• 6000

• 4000

For a modeling agency, Fixed costs: = £30,000; Variable cost: = £200 per photo shoot; Forecast output (Sales): = 140 photo shoots; Selling price: = £1000 per photo shoot

What is the Contribution Margin?

• £112 000

• £112 500

• £375

• £800

What is the break-even point in units for a company whose total fixed costs are £275,450; selling price per unit is £16; and variable cost per unit is £14.75?

• 220,360

• 150,300

• 183,633

• 225,120

We are going to manufacture Whats-Its. The Whats-It machine costs £4000.It also costs £5 for materials and labour for each Whats-It. We are planning to sell our Whats-Its for £12 each. How many Whats-Its must we sell in order to breakeven?

• 571.42

• 572

• 570. 63

• 571

My total costs are £50,000 when selling 100 items. My fixed costs are £20,000. What must be the variable cost of one item? 

• £300
• £500
• £200
• Cannot be calculated