The level of sales at which revenues equal expenses and net income is zero is called the _____.
A)margin of safety
B)contribution margin
C)break?even point
D)marginal income point

Question

Quizplus · Accepted Answer

The level of sales at which revenues equal expenses and net income is zero is called the break-even point. This is the point where a company is not making a profit or loss, but just breaking even. The margin of safety is the amount by which sales can drop before a company incurs a loss, the contribution margin is the amount left over after variable costs have been subtracted from revenues, and the marginal income point is not a commonly used term in accounting or finance.

The Level of Sales at Which Revenues Equal Expenses and Net