To Compute the Break-Even Point in Units,which of the Following

question 16

Multiple Choice

To compute the break-even point in units,which of the following formulas is used?

• A)FC/CM per unit
• B)FC/CM ratio
• C)CM/CM ratio
• D)(FC+VC)/CM ratio

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Definitions:

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which all sellers offer identical products.

Marginal Cost

The cost added by producing one extra item of a product.

Purely Competitive

Another term for pure competition, it refers to a theoretical market structure with a large number of buyers and sellers, homogeneous products, and free entry and exit from the market.

Output Level

The total amount of goods or services produced by a business or economy within a specific period.