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- 1. Multiple ChoiceWhat does break even point show?where a business is neither making a profit or losshow many items to makehow much profit they're makingwhere a business has more fixed costs than variable
- 2. Multiple Choice
What assumption does this statement say "Break even is 54 units"?
if we sell 55 we aren't making a profit
if we sell 54 we begin to make a profit
if we sell 55 we begin to make a profit
if we sell 54 we are not yet at break even point
- 3. Multiple ChoiceWhat is one limitation to calculating break even?helps projected salesbased on estimatesbased on multiple productsconsiders stock wastage
- 4. Multiple ChoiceTo draw the BE graph you must plot Total Costs and ........Total ProductionTotal RevenueTotal Fixed CostsTotal Units
- 5. Multiple ChoiceSome business costs are classified as fixed costs because theymust be paid within a set timedon't change when sales go up or downare unpredictable and must be estimatedcost all businesses the same amount
- 6. Multiple ChoiceIt may be difficult for a new business to predict its variable costs because new businessesare sometimes short of working capitaldon't have access to industry figuresmay have inexperienced employeesdon't have past sales records
- 7. Multiple Choice
The formula to calculate revenue is:
REVENUE = FIXED COSTS + VARIABLE COSTS
REVENUE = VARIABLE COSTS * PRICE
REVENUE = UNITS SOLD * PRICE
REVENUE = UNITS SOLD * TOTAL COSTS
- 8. Multiple Choice
The formula to calculate Total Cost is:
TOTAL COST = VARIABLE COSTS X FIXED COSTS
TOTAL COST = VARIABLE COSTS + FIXED COSTS
TOTAL COST = REVENUE - VARIABLE COSTS
TOTAL COST = REVENUE - FIXED COSTS
- 9. Multiple Choice
What is represented by the purple region in the break even diagram shown here?
The break even point
Profit
Loss
- 10. Multiple Choice
What is represented by the orange region in the break even diagram shown here?
The break even point
Profit
Loss
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