Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Business Arithmetic

Question:
Which of the following formula is correct for break even point?
Options:
Total revenue = Total expenses
(Qty x Unit Price) = (Qty x Unit Cost) + Fixed Exp
Qty x Gross Margin (or Profit) per Unit = Fixed Exp
All of the above
Correct Answer:
All of the above
Explanation:
At the breakeven level
Total revenue = Total expenses
(Qty x Unit Price) = (Qty x Unit Cost) + Fixed Exp
Qty x (Unit Price – Unit Cost) = Fixed Exp
Qty x Gross Margin (or Profit) per Unit = Fixed Exp