To determine the break-even point,a firm needs first to ________.
A)determine the point at which supply equals demand
B)determine total market share
C)calculate the contribution per unit to fixed costs
D)determine what percentage of the market it desires
E)conduct an environmental audit

Question

Quizplus · Accepted Answer

To determine the break-even point, a firm needs to calculate the contribution per unit to fixed costs. This involves analyzing the costs associated with producing and selling a product or service, and determining the point at which revenues equal total costs. Only then can the firm know at what point it will break even and start making a profit. The other options listed (A, B, D, E) are all related to different aspects of market analysis, but they are not directly relevant to determining the break-even point.

To Determine the Break-Even Point,a Firm Needs First to ________