Which two of the following statements are true of the break-even chart?

Select more than one:

a) A business makes a profit where the revenue curve is below the total cost curve.

b) The break-even point is the point where the total cost curve intercepts the total revenue curve.

c) Margin of safety increases when the break-even point increases.

d) A business makes a loss when the total revenue curve is below the total cost curve.

Match the following description (1-6) with the correct term below (a - f):

Description:

1. Identification of the impact that changes in selling price, variable cost, or fixed cost have on the break-even point.

2. The amount of money the business would like to earn by selling goods or services.

3. The point where a business does not make a profit or loss.

4. The difference between expected sales volume and the break-even point.

5. The difference between revenue and variable costs.

6. The difference between total revenue and total costs.

Please match these six descriptions with the following terms:

a) Profit

b) Contribution

c) Break-even analysis

d) Margin of safety

e) Break-even point

f) Target profit

Answer.

Description:

a) Identification