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3 years ago

Give an example of a case where a cost and a revenue function do not have a break-even point.

Business

2 answers:

inessss [21]3 years ago

6 0

Answer:

When profit margin exceed losses

Explanation:

Firstly Break even point is a point where revenue equals cost.

A typical example of a scenario where cost and revenue function does not have a break even point includes, when the profit margin of any given company or individual is higher when compared to the losses of the company or individual. For there to exist a break even point, company or individuals sales have to fall considerably such that revenue equals cost( no profit,no loss).

oee [108]3 years ago

5 0

An example of a case where a cost and revenue function do not have a break even point includes, when the profit margin is larger than the losses of the business.

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2 years ago

The Fashion Shoe Company operates a chain of women's shoe shops around the country. The shops carry many styles of shoes that ar

timofeeve [1]

The computation of the break-even point (in units) is given below:

Break-eventpoint = Fixed cost / contribution margin.

= Fixed cost / (selling price - variable cost)

= $158,000/ ($20-%10)

= $158,000/ $10

= %15,800 units.

The break-even point (in units) for Shop 48 is 15,800 units. It can be computed by dividing the amount of fixed cost by the amount of per unit contribution margin. And the per unit contribution margin can be computed by deducting the variable cost per unit from the selling price per unit.

The break-even point is the point at which total costs equal total sales, and there is no loss or profit for a small business.

Learn more about the break-even point at

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1 year ago

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2 years ago