Break even point in units is the volume or level of operation at which total revenue and total variable costs are exactly equal.
2007-11-29 00:17:27 · 4 answers · asked by Anonymous in Education & Reference ➔ Homework Help
It is false! The even point will level the volume so it finds the break. The total revenue would be 0 if the level operation is what is stated. The variable being replaced with 1 shows that there could never be an even equation. It is so obvious that how many units is actually not relative to the situation at all. The break even point is never even, just balanced. Once replacing that with variables is what makes the statement false. If both were originally even that with 2 different variables, it would not be even anymore!
2007-11-29 00:36:44 · answer #1 · answered by energzerbnny 2 · 0⤊ 0⤋
Don't you have to cover the fixed costs as well? I think its false.
2007-11-29 00:24:43 · answer #2 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
If the ending amount is zero then that will be correct.
2007-11-29 00:29:51 · answer #3 · answered by timmy boomstick 3 · 0⤊ 0⤋
what?
2007-11-29 00:20:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋