Which of the following costs would be a fixed cost for Shaun, a knitwear manufacturer?
Purchasing wool
Labour cost: knitting machine operators
Factory rent
Labels and packaging
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.
Toby 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?
227 tickets
236 tickets
241 tickets
250 tickets
