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:

Bureau of Labor Statistics

A US government agency that collects, processes, and disseminates essential statistical data on labor market activity, working conditions, and price changes in the economy.

Adult Population

Refers to the portion of the population that is considered to be of working age, typically above 18 years old.

Employed Category

A classification used in labor statistics to describe individuals who are currently working for pay or profit, including full and part-time workers.

Underemployed

Referring to individuals working in jobs that do not utilize their skills and educational background or working fewer hours than desired.