5TO BUSINESS-MDFL2:Break-even point 1

This level of output occurs where the total costs

equal the total revenue

• Current output

• Margin of safety

• Maximum production

• Break-even point

A measure of the difference between the break even level of output and the actual (current) level of out put

• Current output

• Margin of safety

• Maximum production

• Break-even point

Does the break even show the profit or loss of a company?

• Yes

• NO

The breakeven point is the intersection of total costs and total revenues in the graphical method.

• True

• False

Which of the following is not necessary to graph or calculate the breakeven point?

• Price

• Variable cost per unit

• Current production

• Fixed Cost

Which of the following is not necessary to calculate the margin of safety?

• Breakeven point

• Variable cost per unit

• Current production