The __________ is calculated by dividing total fixed costs by price minus variable costs.

A) inventory turnover ratio
B) net margin
C) break-even point
D) economic order quantity
E) current ratio

Break-Even Point

The financial state where total costs equal total revenues, meaning the business is not making a profit, but it's not losing money either.

Total Fixed Costs

The sum of all business expenses that remain constant regardless of production volume, such as rent, salaries, and insurance.

Variable Costs

Expenses that change in proportion to the activity of a business.