To calculate the break-even point, that is, where neither a profit nor a loss is made, the formula
Sx = VCx + FC + P can be used, but only if P is equal to zero.

Name: To calculate the break-even point, that is, where neither a profit nor a loss is made, the formula Sx = VCx + FC + P can be used, but only if P is equal to zero.
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Question

Quizplus · Accepted Answer

The formula for break-even point is Sx = VCx + FC + P, but P must be zero for the calculation to result in neither a profit nor a loss. Therefore, the statement is true.

To Calculate the Break-Even Point, That Is, Where Neither a Profit