Knowledge Check: Chapters 9 \& 10 Quiz (20-Points) Chapter 9 1) identifies 'how' the company will earn income (from sales of goods \& services) and generate profits. COGS (cost of goods sold) Operating Profit Revenue Model Breakeven Analysis Question 2 2 pts 2) is the direct costs of producing a product/service such as materials, manufacturing, shipping, inventory and sales commissions. Revenue Model Operating Expenses COGS (cost of goods sold) Breakeven Analysis 3) are the costs of operating a business such as but not limited to rent, utilities, administration, marketing/advertising and employee salaries. COGS (cost of goods sold) Operating Expenses Revenue Model Breakeven Analysis Question 4 4) is the amount 'cash' from revenue after all costs and expenses have been subtracted. Revenue Model Breakeven Analysis Operating Profit COGS (cost of goods sold) 5) is a financial method used to set the 'price' based on the point when 'total revenue' equals 'cost of goods sold' and all income beyond that point is 'profit'. The financial equation is: BEU = Fixed costs / (sales price per unit - variable cost per unit) Business Model Breakeven Analysis Revenue Model Income Statement