How does a firm determine the number of units they must sell to pay for fixed and variable costs?
A) break-even point
B) cost structure
C) price elasticity
D) price sensitivity point
E) break-even analysis
Answer: E
Explanation: A critical calculation in setting prices is break-even analysis, determining the number of units a firm must sell at a given price to recoup both fixed and variable costs–to "break even," in other words.
You might also like to view...
The ______________________________ plans and forecasts an organization's short-term and long-term HR needs
Fill in the blank(s) with correct word
Identify and explain four actions that top executives can take that are key elements in directing organizational action and building capabilities behind the drive for good strategy execution to meet or beat performance targets.
What will be an ideal response?
An organization or venture must have a ________ motive in order to qualify as a partnership.
A. large-scale expansion B. noncommercial C. profit D. target market
When asset prices fall following a boom,
A) moral hazard may increase in companies that have lost net worth in the bust. B) financial institutions may see the assets on their balance sheets deteriorate, leading to deleveraging. C) both A and B are correct. D) none of the above are correct.