The greater the ratio of TFC to (P - VC)is means that the business needs to sell fewer units to make a profit.

Name: The greater the ratio of TFC to (P - VC)is means that the business needs to sell fewer units to make a profit.
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Question

Quizplus · Accepted Answer

The greater the ratio of TFC (total fixed cost) to (P - VC) (price minus variable cost), the higher the breakeven point and the more units a business needs to sell to make a profit. So, the statement is false.

The Greater the Ratio of TFC to (P - VC)is