Break Even *Expense & Revenue

Expenses that depend on the number of items produced are...

• Variable Expenses

• Fixed Expenses

• Revenue

• Profit

Expenses that do not change based on the quantity produced such as having the lights on are...

• Variable Expenses

• Fixed Expenses

• Revenue

• Profit

Revenue is:

• The amount of money a company pays its employees

• The amount of money a company has left over after paying bills

• The amount of money a company makes from sales

• The amount of taxes a company has to pay

Expenses that come out every month but may cost a different amount based upon how much you use the product or service are called __?__

• Variable Expenses

• Fixed Expenses

• Periodic Expenses

• Discretionary Expenses

Which of the following is an example of a fixed expense?

• Sales commission

• Raw materials

• Utilities

• Rent

The expense equation is

• E=V+F

• E=q+F

• E=F+V

• E=Vq+F

Considering the expense equation and the demand equation, q=-3p+10, which of the following is the expense equation in terms of p?

• E=Vq+F

• E=V(-3p+10)

• E=V(-3p+10)+F

• E=-3p+10

The Revenue Function is R=pq where q represents the...

• quantity demanded

• quantity produced

• quantity expensed

• quantity sold

If the Expense equation is E=5q+10 and the demand equation is d=-2p+4, which expense equation is expressed in terms of p in the most simplified way?

• E=5q+10

• E=5(-2p+4)+10

• E=-10p+30

• E=-10p+14

To determine when a company will break even, _____ the expense and revenue functions and determine where they intersect.