If a firm sells more than one product,the break-even point in units represents:
A)the number of units of the largest-selling product required to break even.
B)the number of units of the most profitable product required to break even.
C)the number of units of the highest-revenue product required to break even.
D)the sum of the units of all products required to break even.

Question

Quizplus · Accepted Answer

The break-even point for a firm with multiple products represents the total number of units of all products necessary for the firm to break even. This takes into account the revenue and cost contributions of each product, rather than focusing solely on the largest-selling, most profitable, or highest-revenue product.

If a Firm Sells More Than One Product,the Break-Even Point