Question

When a business sells more than one product at varying selling prices, the business's break-even point can be determined as long as a.the number of products does not exceed fifteen b.the number of products does not exceed two c.there is no limit d.the number of products does not exceed three

Answer 1

Answer:

The correct answer is letter "C": there is no limit.

Explanation:

The break-even point represents the stage in which a company does not earn revenue either incur losses after its sales. Falling behind the break-even point implies incurring losses while staying beyond the break-even point represents the firm is being profitable.

The break-even point serves as an indicator for organizations to determine how far they are from their selling objectives. The number of product lines and products the firm offers does not influence the determination of what the break-even point is. Then, there is no number limit.

Answer 2

Answer: c. there is no limit

Explanation: There is no limit to the number of products sold at varying prices when determining the business's break-even point. The break even point is defined as that volume of production where total costs (fixed and variable costs) equals total sales (revenue) resulting into a no-profit no-loss situation.  As a result, when output falls below that point there is loss; and if output exceeds that point there is profit.