Which of the following determine what sales volume must be reached for a product before the company's total costs equal total revenue and no profits are earned?
A)marginal revenue estimates
B)break-even analyses
C)average total cost (ATC)figures
D)marginal costs of goods sold

Question

Quizplus · Accepted Answer

Break-even analysis is a tool used to determine the sales volume necessary for a company to cover all of its costs and start earning profits. It involves analyzing the fixed and variable costs associated with producing a product and determining the point at which the total revenue generated by sales equals the total costs. This point is known as the break-even point. Marginal revenue estimates and marginal costs of goods sold can be used in the break-even analysis, but they alone do not determine the break-even point. Average total cost (ATC) figures are a component of the break-even analysis.

Which of the Following Determine What Sales Volume Must Be