The break-even point is:
A)the point where zero contribution margin is earned.
B)the point where zero profit is earned.
C)the point where selling price just equals variable cost.
D)equal to sales revenue less fixed costs.

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which profit is zero, meaning total revenues equal total expenses (both fixed and variable costs). At this point, a business is not making a profit but is not incurring a loss either.

The Break-Even Point Is