Asked by Megan Smith on Jul 02, 2024
Verified
Break-even volume per hour = Cost per hour/Gross profit percentage
Break-Even Volume
The quantity of sales or units sold required to cover the fixed and variable costs of production, resulting in a situation where the business makes neither a profit nor a loss.
Gross Profit Percentage
A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.
- Gain insight into the economic concepts pertinent to sales, including break-even points and sales targets.
Verified Answer
JM
Jawhara Maroc8 days ago
Final Answer :
True
Explanation :
This is the formula to calculate the break-even volume per hour. It is derived by dividing the cost per hour by the gross profit percentage.
Learning Objectives
- Gain insight into the economic concepts pertinent to sales, including break-even points and sales targets.