When Coca-Cola considers their variable production costs,fixed costs,and revenue,they begin making money when revenue is 85 percent of total costs.This is referred to as their:
A)break-even point.
B)point of maximum profit.
C)coverage amount.
D)incremental return quantity.

Question

Quizplus · Accepted Answer

The scenario described in the question refers to the break-even point, which is the level of sales at which total revenue equals total costs, resulting in neither a profit nor a loss. In this case, Coca-Cola reaches this point when their revenue is 85% of their total costs.

When Coca-Cola Considers Their Variable Production Costs,fixed Costs,and Revenue,they Begin