In order for a break-even quantity to exist in the presence of positive fixed costs, sales price must exceed variable cost per unit.

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Quizplus · Accepted Answer

This is because break-even quantity is the point at which total revenue equals total cost, including both variable and fixed costs. If the sales price is not high enough to cover at least the variable cost per unit, the total revenue will always be lower than total cost, and there will never be a break-even point.

In Order for a Break-Even Quantity to Exist in the Presence