Figure 13-5

-The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity,price,revenue,cost,and profit scenarios shown in Figure 13-5 above.What is the break-even point quantity for her picture frame store?
A)0
B)400
C)800
D)1,200
E)2,000

Question

Figure 13-5
 
-The owner of a picture frame store has generated a spreadsheet of several calculations based on different quantity,price,revenue,cost,and profit scenarios shown in Figure 13-5 above.What is the break-even point quantity for her picture frame store?
A)0 
B)400 
C)800 
D)1,200 
E)2,000

Quizplus · Accepted Answer

The break-even point is the quantity at which total revenue and total cost are equal,resulting in a profit of $0.BEP occurs in row 2 where TR = $48,000 and TC = $48,000.Subtracting TC from TR equals a profit of $0.Thus,the BEP = 400 picture frames that must be sold to break even.

Figure 13-5 -The Owner of a Picture Frame Store Has Generated a Store