A Territory's Break-Even Point Can Be Computed in Terms of Dollars

question 53

Multiple Choice

A territory's break-even point can be computed in terms of dollars by dividing the _____ with gross profit percentage.

• A) salesperson's sales revenue
• B) gross sales
• C) total sales
• D) salesperson's fixed costs
• E) salesperson's total work hours

---

Definitions:

Capacity

The maximum amount that something can contain or produce, often used in the context of production and manufacturing.

Lumpy Assets

Those assets that cannot be acquired smoothly, and that require large, discrete additions. For example, an electric utility that is operating at full capacity cannot add a small amount of generating capacity, at least not economically.

Financial Forecasting

The process of estimating or predicting how a business will perform in the future through the use of historical data and other information.

Fixed Assets Added

Refers to the purchase or acquisition of physical assets by a company that are expected to be used for longer than one accounting period.