To Break Even, a Business Must ________

question 26

Multiple Choice

To break even, a business must ________.

• A) Sell enough units to cover its fixed costs
• B) Sell enough units to cover all its costs
• C) Sell enough units to earn a profit
• D) Sell enough units to cover its variable costs

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Definitions:

Profit Sharing Plan

A benefit plan where employees receive a portion of the company's profits, typically in the form of annual bonuses, aligning their interests with the financial success of the organization.

Piece Rate

A pay plan in which workers are paid a fixed sum for each unit of production completed.

Individual-Level

Pertaining to or focusing on actions, reactions, or impacts on a single person, as opposed to groups or organizations.

Merit Pay

A pay plan consisting of a pay rise which is linked directly to performance.