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6. How do you calculate profit?

  • Fixed costs / (Selling price per unit - Variable cost per unit)
  • Sales revenue - Total costs
  • Fixed costs + Variable costs
  • Selling price per unit - Variable cost per unit

7. How do you calculate break-even output?

  • Selling price x Number of items sold
  • Fixed costs / (Selling price per unit - Variable cost per unit)
  • Sales revenue - Total costs
  • Contribution per unit x Number of items sold

8. What is market segmentation?

  • The sale of the right to use a business idea by an existing business
  • A technique where the market is broken down into smaller sections with similar characteristics
  • The cost of the next best alternative forgone
  • The individual buying the right to the franchise