Answer :

Final answer:

According to the information given, Pete's Yoga Center business has not broken even in any of the three scenarios. This is because the firm's revenues do not offset variable costs. Achieving break even requires covering both fixed and variable costs.

Explanation:

Based on the provided information, Pete's business, the Yoga Center, has not broken even in any of the three scenarios. The firm continues to lose money. When the average variable costs are not covered by the earned revenues, the most prudent decision is to shut down the business to avoid further losses.

Let's break down the scenarios. In the first scenario, the company has no revenue at all. Thus, it should shut down to avoid variable costs, such as hiring teachers. In the second scenario, the firm can't make enough money to offset rising variable costs, so it should also shut down. Lastly, in the third scenario, while the revenue is high enough to decrease losses, the firm has not broken even because expenses are not fully covered by the revenues.

These examples show that achieving a break even point in a business doesn't just mean covering fixed costs, but also earning enough income to cover variable costs. The break even point is a critical component in evaluating the economic health of a business.

Learn more about Break Even here:

https://brainly.com/question/31388412

#SPJ2

Thanks for taking the time to read Based on the diagram has Pete s business broken even covered its fixed expenses and become profitable. We hope the insights shared have been valuable and enhanced your understanding of the topic. Don�t hesitate to browse our website for more informative and engaging content!

Rewritten by : Barada

Answer:yes

Explanation: