Thebreak-even point is the level of sales at which revenue equals fixed costs.
举一反三
- Days of Our Lives Hospital hastotal variable costs of 90% of total revenues and fixed costs of $50 millionper year. There are 50,000 patient-daysestimated for next year. What is thebreak-even point expressed in total revenue?
- Pearl Lights sells only pearl necklaces. 8,000 units were sold resulting in $240,000 of sales revenue, $60,000 of variable costs, and $40,000 of fixed costs. The breakeven point in total sales dollars is ________. A: $40,000 B: $53,334 C: $100,000 D: $58,334
- Thebreak even point is located at the intersection of the total revenue line andthe total expenses line on a cost volume profit graph.
- A firm that shuts down temporarily has to pay A: its variable costs but not its fixed costs. B: its fixed costs but not its variable costs. C: both its variable costs and its fixed costs. D: neither its variable costs nor its fixed costs.
- A firm maximizes profit by operating at the level of output where A: average revenue equals average cost. B: average revenue equals average variable cost. C: total costs are minimized. D: marginal revenue equals marginal cost. E: marginal revenue exceeds marginal cost by the greatest amount.