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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Breakeven Analysis

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				Costs that are not a function of units of production are known as __________.


2				Direct labor and materials are examples of ______________ costs.


3				In linear breakeven analysis, the alternative that is favored above the breakeven point is the one with the _________variable cost.


4				A parameter such as first cost (P) or annual operating cost (AOC) that appears in both breakeven relations is called the _________________.


5				The profit (loss) for a linear breakeven analysis is calculated as __________.

Answer choices for questions 1 through 5

A)	Cost + revenue
B)	Revenue - (fixed cost - variable cost)
C)	Variable
D)	Market parameter
E)	Do nothing
F)	Higher
G)	Revenue - total cost
H)	Total cost
I)	Profit
J)	Fixed costs
K)	Common variable
L)	Lower

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