Final answer:
a) True
The student's question involves understanding the break-even formula and the effect of a discount on its application. The answer is true; the formula does include a condition when there is a discount, as the selling price, and thus the revenue per unit, will be impacted, which in turn affects the break-even point.
Step-by-step explanation:
The student's question pertains to the condition or caveat in the application of the break-even formula when discounts are applied. The break-even formula is generally represented as Break-Even Point (BEP) = Fixed Costs (FC) / (Revenue per unit (R) - Variable Cost per unit (VC)). However, it is important to note that when a discount is introduced to the selling price, the revenue per unit (R) will decrease, which in turn affects the break-even calculation.
This means that the correct answer to the student's question is true. There is indeed a condition or caveat when applying the break-even formula if a discount is given. The selling price after discount must be used to calculate the revenue per unit in the formula to ensure an accurate break-even analysis.