If break-even point is 100 units,each unit sells for $30,and fixed costs are $1000,then on a graph the:
A)revenue line will start at $1000.
B)total revenue line and the total cost line will intersect at $3000 of revenue.
C)total cost line will be zero at zero units sold.
D)All of these answers are correct.

Question

Quizplus · Accepted Answer

The break-even point is the point where total revenue equals total cost. 
Given that the break-even point is 100 units, each unit sells for $30, and fixed costs are $1000:

Total revenue at 100 units = 100 x $30 = $3000 
Total cost at 100 units = Fixed cost ($1000) + Variable cost at 100 units (0) = $1000

Therefore, the total revenue line and the total cost line will intersect at $3000 of revenue. Option B is correct. 
Option A is incorrect because the revenue line will start at $0 (the origin). 
Option C is incorrect because the total cost line will start at $1000 (the fixed cost). 
Option D is incorrect as only option B is correct.

If Break-Even Point Is 100 Units,each Unit Sells for $30,and