Break-Even Is the Number of Units at Which

question 131

Multiple Choice

Break-even is the number of units at which:

• A) total revenue equals price times quantity.
• B) total revenue equals total variable cost.
• C) total revenue equals total fixed cost.
• D) total profit equals total cost.
• E) total revenue equals total cost.

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Definitions:

Notes Payable

A liability account that represents amounts owed on written promises to pay a specific sum of money at a future date.

Formal Promise

An official commitment or assurance, often in writing, to perform a specified action or uphold a certain condition.

Interest Payment

The amount paid over a period for borrowing money or delaying the repayment of a debt, typically expressed as an annual percentage of the principal.

Maturity Date

The date on which a financial obligation or investment becomes due for payment or expires, marking the end of its term.