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Introduction to Break-Even Analysis and Calculation

Introduction to Break-Even Analysis and Calculation

Assessment

Interactive Video

Business

University

Practice Problem

Medium

Created by

Wayground Content

Used 3+ times

FREE Resource

7 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What happens when a business's costs are lower than its revenue?

The business has no change in financial status.

The business breaks even.

The business incurs a loss.

The business makes a profit.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

At what point does a business reach its break-even level of output?

When total revenue equals total costs.

When total costs are greater than total revenue.

When total costs are zero.

When total revenue is greater than total costs.

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the break-even level of output?

Price multiplied by variable cost per unit.

Total revenue minus total costs.

Fixed costs plus variable costs.

Fixed costs divided by price minus variable cost per unit.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the contribution per unit if a T-shirt sells for £10 and costs £6 to produce?

£6

£4

£10

£16

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How is profit calculated using the contribution and fixed costs?

Profit is the fixed costs divided by total contribution.

Profit is the total contribution plus fixed costs.

Profit is the fixed costs minus total contribution.

Profit is the total contribution minus fixed costs.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a shop sells 150 units, what is the total contribution if the contribution per unit is £40?

£2000

£6000

£1500

£4000

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the profit if the total contribution is £6000 and fixed costs are £4000?

£2000

£1000

£4000

£3000

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