Question

part 1)

If we know the construction costs and the revenues, which of the following can be calculated?

Group of answer choices

Gross Profit Margin

Break-even point

General Conditions

Project Contingency

part 2)

A break-even point does nothing for growth. It merely tells you the ___________ you need to "break even".

Group of answer choices

minimum amount of direct costs

minimum amount of gross profit

minimum amount of sales

minimum amount of work in estimating

Answer 1

Question 1

Correct answer-----------Gross Profit Margin

.

Gross margin equals sales minus cost of production.

In above case revenue of contract minus contruction cost will give us gross margin and if we deduct fixed cost also then we will get net income.

Question 2

Correct answer-----------minimum amount of sales

.

The breakeven tells us minimum amount of sales equired to keep running the business. It is that level of business activity when sales revenue equals total expenses (fixed and variable).