The Formula Total Revenue − Total Cost or [(Unit Price

question 119

Multiple Choice

The formula Total revenue − Total cost or [(Unit price × Quantity sold) − (Fixed cost + Variable cost) ] represents

• A) the value equation.
• B) the sales ratio.
• C) average revenue.
• D) the break-even point.
• E) the profit equation.

---

Definitions:

Interest Rate

The percentage of an amount of money which is charged for its use per a certain period, often annually, by a lender to a borrower.

Medium of Exchange

A medium of exchange is anything widely accepted as a form of payment, making trade easier by eliminating the need for a coincidence of wants.

Store of Value

An asset, commodity, or currency that can be saved, retrieved, and exchanged in the future without significantly losing value.

Holding Wealth

The act of owning, managing, and retaining assets or capital with the goal of increasing financial security and potential for future income.