Break-Even Point Analysis

Answers

1. B. A business is operating at a break-even when revenues match total costs, including both fixed and variable costs, over a given period of time.

2. A. When the amount of an item used by a business varies with the quantity of product or service produced, the cost is considered variable.

3. A. The breakeven point is calculated by determining the per unit contribution margin and then dividing fixed costs by that figure.