The number of units of a product that must be sold for total revenue to equal total costs is called the
A) equilibrium volume.
B) balanced quantity.
C) contribution margin.
D) break-even point.

Question

Quizplus · Accepted Answer

The break-even point represents the point at which the company is neither making or losing money, and is an important metric for determining a company's financial viability. It is calculated by dividing total fixed costs by the contribution margin per unit, which gives the number of units that must be sold for the company to cover all of its costs. Therefore, the correct answer is D) break-even point.

The Number of Units of a Product That Must Be