Question

In order to break even, your minimum selling price must be __________ your variable costs.
A.
Higher than
B.
Lower than
C.
Equal to
D.
Half of


Please select the best answer from the choices provided

A
B
C
D

Answer 1

A — Higher than.
To break even you must cover variable costs plus enough per unit to cover fixed costs; selling at variable cost only covers variable costs, not fixed costs.