What Does a Break-Even Point of 100 Units Mean to a Firm

question 118

Multiple Choice

What does a break-even point of 100 units mean to a firm?

• A) The firm must sell 100 units to maximize its profits.
• B) Fixed costs plus variable costs equals 100 units.
• C) By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs.
• D) If the firm sells 100 units, its total revenues will equal its total costs.

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Definitions:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Social Purpose

The broader, communal objectives or contributions that an action, policy, or organization aims to address or fulfill.

Workers' Needs

The essential requirements of employees to perform their tasks effectively, including physical, psychological, and social needs.

Calling

A strong urge toward a particular way of life or career; a vocation.