The break-even point is that level of activity where:
A) total revenue equals total cost.
B) variable cost equals fixed cost.
C) total contribution margin equals the sum of variable cost plus fixed cost.
D) sales revenue equals total variable cost.
E) profit is greater than zero.

Question

Quizplus · Accepted Answer

The break-even point is the level of activity at which total revenue equals total costs, meaning there is no profit or loss.

The Break-Even Point Is That Level of Activity Where