Which of the Following Best Represents the Formula for the Breakeven

question 173

Multiple Choice

Which of the following best represents the formula for the breakeven point?

• A) total variable costs divided by (price plus fixed costs)
• B) total fixed costs divided by (price plus variable costs)
• C) total revenue divided by (price minus fixed costs)
• D) total fixed costs divided by (price minus variable costs)

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Definitions:

Capital

Wealth in the form of money or other assets owned by a person or organization or available for purposes such as starting a company or investing.

Factor Suitability

Factor suitability refers to the degree to which a country's resources—such as labor, land, and capital—are appropriate for producing certain goods or services efficiently.

Law Of Increasing Cost

An economic principle that states as production of a good expands, reflecting increased demand or supply shifts, the cost of producing an additional unit of output increases.

Butter

A dairy product made from churning milk or cream, widely used as a spread and in cooking.