What Is the Break-Even Quantity (Produced and Sold)

question 59

Short Answer

What is the break-even quantity (produced and sold)?

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Definitions:

Operating Activity

Activities that relate directly to the business’s primary operations, such as selling goods and providing services, not including investing or financing activities.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed, opposed to adjusting net income for indirect factors.

Net Cash Flows

The total amount of cash and cash-equivalents being transferred into and out of a business.

Operating Activities

Transactions and events that affect the net income, related to the core business operations of a company.