BEP QUIZ!

The main purpose of break-even analysis is to?

• Set market price

• Calculate taxes

• Find the minimum sales needed to avoid loss

• Find the minimum cost needed

What factors can lead to a decrease in the Break Even Point?

• Reduction in fixed costs

• All answers correct

• Increase in selling price

• Reduction in variable costs

What is the Break Even Point (BEP)? 

• The point when the company starts losing money

• The point where total sales equals total cost

• The point of maximum profit

• The point when the selling price increase

A company sells T-shirt at IDR 50.000 each. The variable cost per T-shirt is IDR 20.000, and fixed monthly cost are IDR 300.000. What is the break-even point in units?

• 100

• 10

• 1000

• 10000

Which of the following is NOT required to calculate BEP?

• Fixed cost

• Variable cost per unit

• Number of employee

• Selling price per unit

How can a business improve its Break Even Point?

• Reduce product quality

• Reduce costs, increase prices, improve efficiency, and boost sales volume.

• Increase operational delays

• Cut marketing budget