break even quiz

Quiz 29: Break Even Quiz

Test your knowledge of double entry bookkeeping with our online break even quiz.

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1. What is the missing term in the break even formula below?
Break even revenue = Operating expenses / ?
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Wrong
2. What is the missing term in the break even formula below?
Break even units = Operating expenses / (Selling price – ?)
Right!
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Wrong
3. What is the missing term in the target profit formula below?
Break even units = (Operating expenses + ?) / (Selling price – Cost )
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4. If the fixed operating expenses are 40,000, and the gross margin percentage is 80%, what is the break even revenue for the business?
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5. As the gross margin percentage increases, what happens to the break even revenue?
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6. As the fixed operating expenses of a business increase, what happens to the break even revenue?
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7. If a business has fixed operating expenses of 60,000, a gross margin percentage of 50% and wants to achieve a target profit of 14,000, what level of revenue does it need?
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8. If a business has fixed operating expenses of 55,000, a unit cost price of 8.50, what selling price per unit must it charge to break even at 5,000 units ?
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9. Break even occurs when?
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10. A business is said to be at break even when ?
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Right!

Try Another Double Entry Bookkeeping Quiz

The break even quiz is one of many of our online quizzes which can be used to test your knowledge of double entry bookkeeping, discover another at the links below.

Last modified September 30th, 2019 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University.

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Posted By: Michael Brown
Break Even