What Is the Formula for Determining the Break-Even Point

question 59

Multiple Choice

What is the formula for determining the break-even point?

• A) Total variable costs divided by (price minus variable costs)
• B) Total variable costs divided by (price minus fixed costs)
• C) Total fixed costs divided by (price minus variable costs)
• D) Total fixed costs divided by (price minus fixed costs)
• E) Total revenue divided by (price minus fixed costs)

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Definitions:

WTO

The World Trade Organization, an international body that deals with the rules of trade between nations, aiming to ensure that trade flows smoothly, predictably, and freely.

Trade Barriers

Restrictions imposed by a government on international trade, such as tariffs, quotas, and import bans, to protect domestic industries.

Negative Balance of Trade

A situation where a country's imports of goods and services exceed its exports, resulting in a trade deficit.

Net Exports

represents the difference between a country's total value of exports and its total value of imports, indicating the balance of trade.