Average cost per transaction is needed to determine ________.

Question

Quizplus · Accepted Answer

The average cost per transaction is a crucial metric for determining the break-even point. By dividing the total fixed costs by the average cost per transaction, it is possible to determine the number of transactions required to cover the fixed costs and break-even. Knowing the break-even point is crucial for understanding the minimum sales volume needed to cover costs and maintain profitability.

Average Cost Per Transaction Is Needed to Determine ________