The Break-Even Volume (BEP)occurs at the Point Where

question 5

Multiple Choice

The break-even volume (BEP) occurs at the point where:

• A)total profit = total cost
• B)fixed cost = total variable cost
• C)total revenue = total cost
• D)selling price per unit = variable cost per unit
• E)total revenue = total variable cost

---

Definitions:

Fixed Costs

Fixed costs in a business that do not change with the amount of goods produced or sold.

Variable Costs

Costs that change in proportion to the level of production or business activity.

Saltwater Taffy

A variety of soft taffy originally produced and marketed in coastal areas, known for its unique texture and array of flavors.

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.