Asked by Hallie Canto on May 18, 2024
Verified
When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as the number of products does not exceed
A) two
B) three
C) fifteen
D) There is no limit.
Selling Prices
The amount of money charged to a customer for a product or service, often influenced by cost, demand, and market competition.
Break-even Point
The point at which total revenue equals total costs and expenses, meaning the business makes neither a profit nor a loss.
- Recognize the impact of sales mix on break-even analysis for companies selling multiple products.
Verified Answer
NA
Nikki AllenMay 18, 2024
Final Answer :
D
Explanation :
The break-even point for a business selling multiple products can be determined regardless of the number of products, as long as the overall costs and revenues can be accurately calculated. There is no specific limit to the number of products for calculating the break-even point.
Learning Objectives
- Recognize the impact of sales mix on break-even analysis for companies selling multiple products.