Process Operation and Maintenance Management 9

What does the BREAKEVEN POINT represent in business decision-making?

• The point where fixed costs are zero

• The point where profit is maximized

• The point where total revenue equals total cost

Which of the following is NOT required to calculate the break-even point?

• Fixed costs

• Selling price per unit

• Variable costs per unit

• Total assets

If fixed costs increase, what happens to the break-even point?

• It becomes zero

• It remains unchanged

• It increases

• It decreases

Why is break-even analysis useful in decision-making

• It determines the optimal product price

• It identifies the minimum sales needed to avoid losses

• It predicts future market trends

Which of the following would decrease the break-even point?

• Raising the selling price per unit

• Increasing variable costs

• Increasing fixed costs