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WorksheetsBreak-Even
Total questions: 10
Worksheet time: 17mins
At the break-even point which of the following is true?
Total revenue > total cost
Total revenue = total cost
Total cost > total revenue
Total cost = 0
If Mr. Edwards had a fixed cost of $500 and a variable cost of $5 per chair and he produced 20 chairs. His total cost would be
$500
$550
$600
$505
The formula for total cost =
Fixed cost x variable cost
Fixed cost - variable cost
Variable cost - fixed cost
Fixed cost + variable cost
Fixed costs are costs that do no change with
(a)
The formula for margin of safety =
Actual sales - break even
Total cost - Total revenue
Break-even - actual sales
Total revenue - total cost
Given that the formula for the Break even point is Price − Variable costFixed cost Calculate Break-even point
(a)
NWA needs to provide flights for (a) customers to break-even
Given that the airline is operating at full capacity, meaning that maximum number of customers is NWA's actual number of customers. The margin of safety is
(a)
Which of the following is NOT a limitation of break-even analysis?
BE analysis assumes that the company will sell all stock at the same price
Variable costs may change, making analysis incorrect
Some businesses sell more than one product so BE becomes difficult to calculate
Helps businesses know how much must be sold in order to be profitable
Which of the following is NOT an advantage of Break-even analysis
It assumes all output is sold at the same price
It tells how much output needs to be sold to make profit
It gives an indication of whether a project is too risky or not
It tells how much revenue a company will make at each level of output
