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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Define Break-even Point (BEP).
💡 Hint: Think about when a business isn't making a profit or loss.
Question 2
Easy
What are fixed costs? Give an example.
💡 Hint: Think of expenses that remain the same every month.
Practice 4 more questions and get performance evaluation
Interactive Quizzes
Engage in quick quizzes to reinforce what you've learned and check your comprehension.
Question 1
What is Break-even Analysis used for?
- To identify profit
- To know the production cost
- To determine the point of no loss or profit
💡 Hint: Think about its purpose in financial planning.
Question 2
True or False: Fixed costs vary with production levels.
- True
- False
💡 Hint: Consider the characteristics of fixed costs.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company plans to launch a new product with fixed costs of ₹100,000, variable costs of ₹50 per unit, and selling price of ₹150 per unit. Determine the break-even point and explain the implications of the result.
💡 Hint: Calculate Contribution Margin first.
Question 2
If actual sales are ₹300,000 and the break-even sales are ₹200,000, calculate the margin of safety and discuss its significance.
💡 Hint: Understand how much security market fluctuations provide.
Challenge and get performance evaluation