Will's business will not be successful unless it charges a price for its products that covers its
A) total variable cost.
B) total cost.
C) total fixed cost.
D) total cost and some margin of profit.

Question

Quizplus · Accepted Answer

The business needs to cover its total cost, both fixed and variable, in order to break even. However, in order to be successful and make a profit, it also needs to add a margin of profit to cover future investments, unexpected expenses, or to reward investors. Therefore, the best choice is D, as it covers both aspects needed for a successful business.

Will's Business Will Not Be Successful Unless It Charges a Price