To determine the break-even point, a firm needs to first do which of the following?
A) determine what percentage of the market it wants
B) determine the point at which supply equals demand
C) calculate the contribution per unit
D) conduct an environmental audit
E) determine total market share

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue equals total costs, and the contribution per unit is the amount of revenue that remains after variable costs are subtracted. Therefore, calculating the contribution per unit is necessary to determine the break-even point. Choices A, B, D, and E are not directly related to determining the break-even point.

To Determine the Break-Even Point, a Firm Needs to First