Asked by Ripindeep Dhaliwal on May 05, 2024
Verified
The data required for determining the break-even point for a business are the total estimated fixed costs for a period, stated as a percentage of net sales.
Break-even Point
The break-even point is the point at which total costs equal total revenues, resulting in neither profit nor loss for the business.
Estimated Fixed Costs
Forecasted expenses that do not vary with the level of production or sales over a specific period of time.
Net Sales
This refers to the total revenue from sales minus returns, allowances for damaged or missing goods, and discounts.
- Analyze break-even points and grasp their criticality in the context of business judgments.
Verified Answer
BA
Bright AssumanMay 11, 2024
Final Answer :
False
Explanation :
The data required for determining the break-even point for a business are the total estimated fixed costs for a period and the contribution margin per unit or percentage of net sales. The fixed costs are not stated as a percentage of net sales.
Learning Objectives
- Analyze break-even points and grasp their criticality in the context of business judgments.