WorksheetsEntrepreneurship 2 Honors Unit 2 Test
Total questions: 10
Worksheet time: 10mins
How many tickets must a movie theater sell to break even if it's total fixed costs are $50,000 , the selling price per ticket is $4.50 and the cost per ticket is $2.50 ?
42,000
35,000
25,000
40,000
Business calculate the break even in dollars so they know the
amount of the business's after-tax earnings
total dollar value of the stock on hand
total dollar sales needed to reach breakeven
amount the business can spend on new purchases
Businesses calculate breakeven in units so they know
how much profit they will earn after they break even
which products they should purchase for resale
which costs are variable and which are fixed
how many products they must sell to break even
How is variable-cost margin calculated?
Variable costs/number of units sold
Variable costs per unit - selling price per unit
variable costs + fixed costs
Fixed costs/variable costs
How does calculating breakeven affect a business's decision to provide incentives for their employees?
It provides a comparison of different types of incentives
It estimates the profit employees will earn from each incentive
It shoes the business when it can afford to offer incentives
It shows whether employees qualify to receive incentives
One of the purposes of calculating breakeven is to help the business
determine stock value
prepare an income statement
forecast sales
set selling prices
A business that does not reach breakeven will
go bankrupt
have profit and loss
lose money
need to relocate
Business can increase their income from sales by
increasing their selling prices
controlling their costs
reducing the number of sales
paying smaller divdends
If a business's sales double, its variable costs will most likely
remain the same
decrease
increase
double
When a business has made enough money to pay its costs and begin _________
break even point
variable cost margin
fixed costs
selling price
