Break-Even Analysis

question 80

Multiple Choice

Break-even analysis. Max's Brakes is introducing a new revolutionary brake-pad for vehicles that will never wear out. Max's will sell the pads for $100 a pair and they will cost $80 in variable costs to produce. If cash fixed expenses are $1,500 per year and the depreciation and amortisation expenses are $600 per year, then what is the Accounting Operating Profit Break-Even point for Max's?

• A) 8 pairs
• B) 21 pairs
• C) 75 pairs
• D) 105 pairs

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Definitions:

Likelihood of Confusion

This refers to a standard used in trademark law to assess whether the similarity between two marks is likely to confuse consumers about the source of the products or services.

Trade Secret

A form of intellectual property comprising confidential information that provides a business with a competitive edge.

Sufficient Value

A concept in contract law that refers to the necessity of both parties exchanging something of value for a contract to be considered valid.

Trademark

A distinct symbol, pattern, or phrase that distinguishes the goods or services of one origin from those of another.