Break-even analysis quiz
- Created by: Nathan Le Tissier
- Created on: 29-11-17 12:32
Other questions in this quiz
2. What is the Margin of Safety?
- When the business makes a loss
- How safe the security of the business is
- The amount of units that can fall before a business reaches its break-even point
- The amount of money the business can lose before it reaches its break-even point
3. How do you calculate the break even point?
- Fixed cost/ Selling price X Variable cost per unit
- Selling price/ Fixed cost X Variable cost per unit
- Variable cost per unit/ Fixed cost X Selling Price
- Fixed cost X Selling price X Variable cost per unit
4. What does a break even chart NOT show?
- The margin of safety
- The fixed costs of a business
- The costs, revenue and profit at different levels of output
- How much output a business has to produce in order to break even
5. At what point does a company break even?
- When the total revenue is lower than the total cost
- When the total revenue is equal to the total cost
- When the total revenue is higher than the total cost
- When the business makes a profit
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