Asked by Leroy Jankins on Jun 16, 2024
Verified
A break-even point can be calculated either in units or in dollars of sales.
Break-Even Point
The level of production or sales at which total costs equal total revenues, leading to no net loss or gain.
Units
Individual components or quantities considered as part of a whole, often used in the context of production or sales.
Dollars of Sales
Refers to the total value, in dollars, of all sales transactions completed over a specific period.
- Understand the calculation and significance of break-even points in units and dollars.
Verified Answer
SS
Sharmila ShresthaJun 17, 2024
Final Answer :
True
Explanation :
This is true. The break-even point can be calculated either by determining the number of units that need to be sold in order to cover all costs, or by determining the dollar amount of sales needed to cover all costs.
Learning Objectives
- Understand the calculation and significance of break-even points in units and dollars.