The Basic Break-Even Model Can Be Modified to Handle More

question 221

Multiple Choice

The basic break-even model can be modified to handle more than one product. This extension of the basic model requires:

• A) price and sales volume for each product.
• B) price and variable cost for each product, and the percent of sales that each product represents.
• C) that the firm have very low fixed costs.
• D) that the ratio of variable cost to price be the same for all products.
• E) sales volume for each product.

---

Definitions:

Joseph V. Baker

Was a pioneering African American public relations professional, recognized for his contributions to the field in the early to mid-20th century.

Burson-Marsteller

A prominent global public relations and communications firm known for its crisis management, brand marketing, and public affairs services.

Corporate Crisis Management

The process by which a business or organization plans for, responds to, and recovers from a significant negative event affecting its reputation or operations.

Social Activism

Efforts to promote, impede, direct, or intervene in social, political, economic, or environmental reform with the desire to make changes in society.