Question 1
A break-even graph illustrates the relationship between
◦ volume and total costs.
◦ sales and costs.
◦ break-even and operating income.
◦ volume and sales price.
Question 2
Assume a sales price per unit of $25, variable cost per unit $15, and total fixed costs of $18,000. If
no units are sold, how much cost would the company incur?
◦ $27,000
◦ The amount of variable costs at the break-even point
◦ $18,000
◦ Zero