Break-Even Charts Usually Assume That

question 93

Multiple Choice

Break-even charts usually assume that:

• A) total cost and total revenue curves are straight lines.
• B) profits will grow continually beyond the break-even point.
• C) the break-even point is reached when total cost just equals total revenue.
• D) any quantity can be sold at the assumed price.
• E) All of these are assumptions of break-even charts.

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Definitions:

Unique-Event

A singular occurrence that is distinct in nature, not expected to repeat under normal circumstances.

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1.

Bullwhip Effect

A phenomenon in supply chains where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Order Size

The quantity of goods a company purchases or produces in a single order to meet its demand while minimizing costs.