ENGG TV

WWW.ENGG. TV

EMAIL : FESUCCESS @ OUTLOOK . COM

Practice Questions
for Break-Even Analysis

Last Updated: November 22, 2022

Name:

Date:
 Break-Even Analysis:

1. ENGG.tv has currently following expenses and sources of revenue generation:

• Annual office rent: $36000

• Annual hosting and other subscription expenses: $3000
• Combined annual fixed salary for typist, graphic designer and web developer: $36000
• Price of one subscription sold by ENGG.tv: $1000
• Annual net profit expected: $27000

How many subscriptions should ENGG.tv sell in a year corresponding this economic
data?
A. 27
B. 58
C. 75
D. 102

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2. Which of the following are characteristics of Break Even Point?
A. There is no loss and no profit to the firm
B. Total revenue is equal to total cost
C. Contribution is equal to fixed cost
D. All of the above

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3. For any company:
A. Sales = Variable expenses + Fixed expenses + Profit
B. Sales = Variable expenses + Fixed expenses - Profit
C. Sales = Variable expenses - Fixed expenses + Profit
D. None of the above

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4. Given selling price is $20 per unit, variable cost is $12 per unit and fixed cost is $10000.
The company sells 1000 units. Which of the following statements is true?
A. The selling quantity is more than break even quantity, hence company will have
profit.
B. The selling quantity is less than break even quantity, hence company will have
loss.
C. The selling quantity is same as break even quantity, hence company will have
no profit or no loss.
D. The selling quantity is more than break even quantity, hence company will have
loss.

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5. Which of the following is true at break even point?
A. Profit = fixed cost + variable cost
B. Sales Revenue = Variable cost
C. Sales Revenue = Total cost - variable cost
D. Contribution = Fixed cost

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