You are planning to open a new restaurant and need to determine how many dinners need to be sold to stay above the break-even point. You will investigate Cost Volume Profit (CVP), also known as break-even analysis.
-First you must understand break-even analysis.The definition of break-even point is where the total revenue _______ total expenses.
A)is less than
B)is greater than
C)equals
D)exceeds

Question

Quizplus · Accepted Answer

The break-even point is where the total revenue equals the total expenses. This means that the business is neither making any profit nor incurring any loss.

You Are Planning to Open a New Restaurant and Need