Use the following information for the next 4 questions.
SXF Corporation sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:

-Point B is best described as
A) Fixed cost
B) Margin of safety
C) Estimated profit at actual volume
D) Breakeven point

Question

Use the following information for the next 4 questions.
SXF Corporation sells its single product for $14 per unit, and its variable cost per unit is $4. Total fixed costs are $800. Its CVP graph is as follows:
 
-Point B is best described as
A) Fixed cost 
B) Margin of safety 
C) Estimated profit at actual volume 
D) Breakeven point

Quizplus · Accepted Answer

Breakeven point is the point where total revenue equals total cost. At this point, there is no profit or loss. Point B is the point where the total revenue line intersects the total cost line. Therefore, Point B is the breakeven point.

Use the Following Information for the Next 4 Questions