Direction: Read the questions carefully and choose the correct option. (2 marks each)

1. What is the break-even point?

a. The point at which fixed cost and variable cost are not equal.

b. The point at which fixed cost and variable cost are equal.

c. The point at which total cost and total revenue are not equal.

d. The point at which total cost and total revenue are equal.

2. Wilhe amount of contribution marein is not enough to cover all fixed expenses, the business

b.Earn a profit

C.Neither earn a profit nor suffer a loss

Be close

d.Suffer a loss

3. At the Break-even point:

a. The company makes profit b.

C.The company makes loss

The company sales 100 units

d. The company makes no profit or loss

4. Which one is included in Break-even formula?

a. Variable costs per unit

b. Total fixed costs C.

Cost price per unit

d. Selling price per unit

5. How do you calculate the Break Even Point in Units?

a.The variable expenses per unit.

b.The sales price per unit.

C.The contribution margin per unit.

d.Fixed costs/(Price -Variable cost)