In Break-Even Analysis, What Is the Break-Even Point

question 112

Multiple Choice

In break-even analysis, what is the break-even point?

• A) the quantity where revenue equals total cost
• B) the quantity where revenue equals fixed cost
• C) the quantity where revenue equals variable cost
• D) the quantity beyond which the firm starts to lose money
• E) the quantity where variable cost equals fixed cost

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Definitions:

Time And Motion Studies

A business efficiency technique combining time study and motion study to standardize work processes and improve productivity.

Workers

Individuals engaged in a job or employment, contributing labor to an organization for wages.

Perform

To carry out, execute, or conduct an action or task.

Economic Quantity

Economic quantity refers to the optimized number or amount of goods that can be produced or purchased at the lowest total cost, considering factors like order costs and holding costs.