Which of the following costs would be a fixed cost for Shaun, a knitwear manufacturer?

Labour cost: knitting machine operators

Which of the following definitions of break-even point is correct?

The break-even point is where total revenue equals total fixed costs plus variable costs.

The break-even point is where total sales revenue equals total contribution.

The break-even point is where total fixed costs equals total variable costs.

. The break-even point is where total revenue equals total fixed costs less variable costs.

Quiz

Gaby Gijsberts 3 questions

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1Which of the following costs would be a fixed cost for Shaun, a knitwear manufacturer?
1. APurchasing wool
2. BLabour cost: knitting machine operators
3. CFactory rent
4. DLabels and packaging
2Which of the following definitions of break-even point is correct?
1. AThe break-even point is where total revenue equals total fixed costs plus variable costs.
2. BThe break-even point is where total sales revenue equals total contribution.
3. CThe break-even point is where total fixed costs equals total variable costs.
4. D. The break-even point is where total revenue equals total fixed costs less variable costs.
3Toby is arranging for a rock concert to be held in the students union. The use of the hall will be free but security costs of £100 will have to be met. The cost of the main band will be £2,500 and the supporting band will cost £150. Tickets will be priced at £11 each. What is the break-even point for this event?
1. A227 tickets
2. B236 tickets
3. C241 tickets
4. D250 tickets