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)point of no return

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which revenues equal expenses and net income is zero. This is an important concept in financial analysis as it helps businesses determine the minimum level of sales needed to cover their costs and make a profit. The other choices (margin of safety, contribution margin, and point of no return) do not refer to this specific concept.

The Level of Sales at Which Revenues Equal Expenses and Net