What is meant by the term break-even point?
Barney Company makes and sells stuffed animals. One product, Michael Bears, sells for $28 per bear. Michael Bears have fixed costs of $100,000 per month and a variable cost of $12 per bear. Howe many Michael Bears must be produced and sold each month to break even?Exercise B
What is meant by the term break-even point? What are two ways in which the break-even point can be expressed? What is the relevant range?