Post Utme Covenant University 2025 Commerce Question 37

Practice objective / multiple choice question 37 from the 2025 Post Utme Covenant University Commerce examination.

Post Utme Covenant University 2025 Commerce Objective / Multiple Choice
Question 37 POST_UTME_COVENANT_UNIVERSITY • 2025 • COMMERCE • objective

A firm's break-even point is the point at which its total revenue equals its total fixed costs. Which of the following is a correct formula for calculating the break-even point?

Answer Options

A. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} + ext{Variable costs}} )
Correct Answer B. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} - ext{Variable costs}} )
C. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} imes ext{Variable costs}} )
D. ( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} - ext{Fixed costs}} )
Correct Answer
B
Correct Option:
( ext{Break-even point} = rac{ ext{Fixed costs}}{ ext{Selling price} - ext{Variable costs}} )

About This Question

This is Post Utme Covenant University 2025 Commerce Question 37. It is one of the objective questions from the 2025 Post Utme Covenant University Commerce examination.

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