Timothy is developing a business plan for a new type of bicycle helmet. He is interested in finding the point at which the costs of producing the helmet will equal the revenue earned from selling the product. Timothy is interested in finding the
A)elasticity of demand.
B)breakeven point.
C)variable costs.
D)price elasticity.
E)sum of fixed costs.

Question

Quizplus · Accepted Answer

The breakeven point is the point at which the costs of producing a product equal the revenue earned from selling it. This is exactly what Timothy is interested in finding, so the correct answer is B. The other choices are not relevant to Timothy's goal of finding the breakeven point.

Timothy Is Developing a Business Plan for a New Type