Give an example of a case where a cost and a revenue function do not have a break-even point.

A typical example of a scenario where cost and revenue function does not have a break even point includes, when the profit margin of any given company or individual is higher when compared to the losses of the company or individual. For there to exist a break even point, company or individuals sales have to fall considerably such that revenue equals cost( no profit,no loss).

Tundexi Tundexi · Answer 2 · 2022-01-21T14:49:55+01:00

An example of a where the cost and revenue function does not have a break even point is when cost does not match the revenue or when the profit margin exceed the losses

Basically, the break even point is a point where revenue equals cost.

The break-even point is the point where there is no loss or gain on the firm's operation.

Break-even point are calculated by:

dividing the fixed costs by the (revenue per unit minus the variable cost per unit)
dividing the fixed costs by the contribution margin.

In conclusion, an example of a where the cost and revenue function does not have a break even point is when cost does not match the revenue or when the profit margin exceed the losses.