The Figure Shows the Graphs of the Cost and Revenue

question 49

Multiple Choice

The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells binoculars. Use the information in the figure to answer the question.

-At the break-even point both cost and revenue are what?

• A) $750
• B) $2250
• C) $1500
• D) $2700

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Definitions:

Net Working Capital

The variance between a business's current holdings and outstanding debts, signifying the entity's short-term economic condition and operational competence.

CCA Rate

The Capital Cost Allowance rate, which determines the percentage of an asset's cost that can be claimed as depreciation for tax purposes in Canada.

CCA

Capital Cost Allowance; a tax deduction in Canada for the depreciation of tangible property.

Earnings Before Interest And Taxes

A measure of a firm's profit that includes all income and expenses except interest and income tax expenses.