Asked by Martevus Blount on May 03, 2024
Verified
If a business sells four products, it is not possible to estimate the break-even point.
Break-even Point
The financial stage at which total revenues equal total costs, resulting in no net loss or gain.
- Examine the feasibility of estimating the break-even point for businesses selling multiple products.
Verified Answer
CB
Caitlin BowersMay 08, 2024
Final Answer :
False
Explanation :
It is possible to estimate the break-even point for a business that sells multiple products by calculating the contribution margin for each product and then determining the overall break-even point for the entire product mix.
Learning Objectives
- Examine the feasibility of estimating the break-even point for businesses selling multiple products.