BUSINESS ADMINISTRATION
BUSINESS MATHEMATICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
the net sales of goods is equal to the cost
|
|
|
the net sales of goods is less to the cost
|
|
|
the net sales of goods is greater to the cost
|
|
|
the profit is zero
|
Detailed explanation-1: -The breakeven point is the level of production at which the costs of production equal the revenues for a product. In investing, the breakeven point is said to be achieved when the market price of an asset is the same as its original cost.
Detailed explanation-2: -When your company reaches a break-even point, your total sales equal your total expenses. This means that you’re bringing in the same amount of money you need to cover all of your expenses and run your business. When you break-even, your business does not profit. But, it also does not have a loss.
Detailed explanation-3: -The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. In other words, you’ve reached the level of production at which the costs of production equals the revenues for a product.
Detailed explanation-4: -To calculate your break-even (dollar value) before net profit: Break-even ($) = overhead expenses ÷ (1 − (COGS ÷ total sales))
Detailed explanation-5: -A company’s breakeven point is the point at which its sales exactly cover its expenses. Fixed Costs ÷ (Price-Variable Costs) = Breakeven Point in Units. Pricing a product, the costs incurred in a business, and sales volume are interrelated.