Break-even point

What is break-even point

• The point at which total revenue is less than total costs
• The point at which total revenue exceeds total costs
• The point at which total revenue is equal to half of the total costs
• The point at which total revenue equals total costs

What is a Fixed Cost?

• A cost that is only applicable to small businesses
• A cost that is variable and unpredictable
• A cost that increases with the level of production or sales
• A cost that does not change with the level of production or sales

What is a Variable Cost?

• A cost that only changes in indirect proportion to changes in the level of production or sales.
• A cost that remains constant regardless of changes in the level of production or sales.
• A cost that is not related to the level of production or sales.
• A cost that changes in direct proportion to changes in the level of production or sales.

What is my break-even point if my total expenses are $30,000

• $30,000

• $10,000
• $40,000
• $20,000

What is my break-even point if my total expenses are $77,000?

• $0
• $77,000
• $100,000

What is considered a high net profit margin?

• 20%

• Between 5-7%
• Above 10%
• Below 1%

What is considered an average Net Profit Margin?

• Around 5%
• Around 15%
• Around 20%
• Around 10%

What is considered a low net profit margin?

• 20%
• Less than 5%
• 10%
• 50%

What is an example of a fixed cost

• Advertising expenses
• Rent for a business's office or factory space
• Cost of raw materials

What is an example of a variable cost?

• Cost of raw materials
• Cost of advertising
• Cost of machinery