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CIPS L6M9 Exam - Topic 1 Question 18 Discussion

Actual exam question for CIPS's L6M9 exam
Question #: 18
Topic #: 1
[All L6M9 Questions]

Greg is the manager at a car wash and is trying to work out the break-even point of his business. Which of the following pieces of information will he need to consider to understand his break-even point? Select ALL that apply.

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Suggested Answer: A, B, D

Greg needs to know his fixed costs, variable costs, and price per car wash to determine his break-even point.

For example, if:

Fixed costs (rent, bills) = 100/day

Variable cost per car wash (soap, sponges) = 5

Price per car wash = 10

The break-even point is when revenue = costs, which means washing 20 cars per day (10 20 = 200 revenue, covering fixed and variable costs).

Number of customers (C) is incorrect, as this is calculated from the break-even formula, not an input.

Number of employees (E) is incorrect, as it is not a direct factor in the break-even calculation (only their wages as part of fixed costs).

(LO 1.3)


by Pa at Jan 05, 2026, 05:16 AM

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King
3 days ago
Don't forget the number of customers! That's key to figuring out the break-even point.
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Arminda
8 days ago
Gotta have that fixed and variable cost info, for sure. And the price per car wash is crucial.
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Olene
13 days ago
A, B, and D are definitely needed to calculate the break-even point.
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Carmelina
18 days ago
I think we practiced a similar question where we had to identify all the factors for break-even analysis, and I remember A, B, and D were definitely part of it.
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Herminia
23 days ago
I feel like the number of customers could be relevant since it affects revenue, but I’m not sure if it’s directly needed for the break-even calculation.
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Georgeanna
29 days ago
I’m not entirely sure, but I think the price per car wash is also crucial for figuring out how many washes he needs to cover costs, so D might be important too.
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Marshall
1 month ago
I remember we talked about fixed and variable costs being essential for calculating break-even, so A and B should definitely be included.
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Nguyet
1 month ago
The key things I need to focus on are the fixed costs, variable costs, and pricing. The other details about customers and employees are likely just there to provide context, but won't directly factor into the break-even calculation.
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Alesia
1 month ago
I'm a bit confused on how the number of customers and employees play into this. Are those just background details or do they actually impact the break-even analysis?
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Pura
2 months ago
Okay, I think I've got this. I'll need to look at the fixed costs, variable costs per car wash, and the price per car wash to determine the break-even point. The number of customers and employees are probably just contextual information.
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Mendy
2 months ago
Hmm, I'm not sure about the number of customers and employees. Do those factor into the break-even calculation?
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Carli
2 months ago
This seems pretty straightforward. I'll need to consider the fixed costs, variable costs, and pricing to figure out the break-even point.
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