If the BVI:
A) is under 1, the blog brings a profit.
B) is greater than 1, the blog costs money.
C) is under 1, the blog costs money.
D) is equal to 1, the blog costs money.
E) is equal to 1, the blog brings a profit.

Question

Quizplus · Accepted Answer

BVI stands for breakeven index, which is calculated by dividing the fixed costs of running the blog by the profit per unit. If the BVI is under 1, it means that the profit generated by each unit sold (or each visit to the blog) is higher than the costs required to produce it, resulting in a profitable business. However, if the BVI is greater than 1, it means that the costs required to produce each unit (or each visit to the blog) are higher than the profit generated, resulting in a loss. Therefore, since option C states that the BVI is under 1 and the blog still costs money, it implies that the costs incurred are higher than the profit generated, resulting in a loss.