If One Increases the Gross Margin

question 42

Multiple Choice

If one increases the gross margin:

• A) the break-even point lowers
• B) the break-even point increases

---

Definitions:

Lagrange Multiplier

A method used in optimization to find the local maxima or minima of a function subject to constraints.

Total Revenue

The total income generated by a business from the sale of goods or services, before any expenses are subtracted.

Available Suites

The number of accommodations or units that are ready for occupancy at any given time, typically used in hospitality or real estate context.

Integer Models

Mathematical models in operations research where the solution variables are required to be integers, often used in decision-making for optimal allocation and scheduling.