Break-Even Analysis

The level of production by a company, which is expressed as the number of units produced and sold.

• Profit

• Volume

• Variable Cost

• Fixed Cost

It is a cost that is independent of the volume of units produced. It will remain the same regardless of the volume of sales.

• Profit

• Volume

• Variable Cost

• Fixed Cost

The difference between total sales and total cost or the income generated by the sale of a product.

• Profit

• Volume

• Variable Cost

• Fixed Cost

It is a cost that is determined on a per-unit basis. It grows in direct proportion to the volume of sales.

• Profit

• Volume

• Variable Cost

• Fixed Cost

The annual fixed expenses to run your manufacturing business are ₱750,000 and variable cost is ₱375 per unit. The selling price of your product is ₱500 per unit. The number of units to be sold to break even is ________.

• 4000

• 5000

• 6000

• 7000

The determination of the number of units that must be produced and sold to equate total sales with total cost.

• Yearly Volume

• Break-Even Sales

• Break-Even Analysis

• Break-Even Point

 Profit is calculated by subtracting the unit variable costs from its selling price.

• True

• False

What is the break-even point in sales from the following data,

• ₱2,500

• ₱3,000

• ₱3,500

• ₱4,000

What is the unit contribution margin from the following data:

• ₱400

• ₱800

• ₱200

• ₱600