Asked by Mariah Rodriguez on May 18, 2024
Verified
Where a business's revenues exactly equal costs
A) Relevant range
B) Break-even point
C) Contribution margin
D) Fixed costs
E) Variable costs
Relevant Range
The range of activity within which the assumptions about fixed and variable cost behaviors hold true.
Break-Even Point
The point at which total cost and total revenue are equal, meaning no net loss or gain, and one has "broken even."
Contribution Margin
The difference between sales revenue and variable costs, measuring the ability of a business to cover its fixed costs.
- Master the idea of the break-even point and recognize its relevance in the sphere of cost-volume-profit (CVP) analysis.
Verified Answer
Learning Objectives
- Master the idea of the break-even point and recognize its relevance in the sphere of cost-volume-profit (CVP) analysis.
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