For any product, what is the break-even quantity?
A) the number sold such that variable costs equal revenues
B) the total number produced to equal the total resources available to the producer
C) the number of products needed to be sold for total revenue to equal total costs
D) the dollar volume of total sales

Question

Quizplus · Accepted Answer

The break-even quantity is the number of products needed to be sold for total revenue to equal total costs. It is the point at which the business breaks even and does not make a profit or a loss. This can be calculated by dividing the total fixed costs of production by the contribution margin per unit (which is the selling price per unit minus the variable cost per unit). Therefore, choice C is the correct answer.

For Any Product, What Is the Break-Even Quantity