Each week, Paul monitors the performance of his products to check that he is making a profit on each line. He understands that there is a relationship between the price he sells them at and the quantity demanded. Reaching the break-even point is an indication that he is pricing his products correctly. The break-even point is:
A) the point at which total sales volume = variable cost.
B) the volume of unit sales at which total revenue = total costs.
C) the volume of unit sales where fixed costs = variable costs.
D) the point at which the price of a product = fixed costs.
E) the volume of unit sales at which total revenue = marginal cost.

Question

Quizplus · Accepted Answer

describe the principles of pricing based on cost and revenue analysis. The break-even point is the volume of unit sales at which total costs equal total revenue.

Each Week, Paul Monitors the Performance of His Products to Check