The break-even point is calculated by identifying the volume or turnover at which: Note from Sarah: please verify that these acronyms are correct. I wasn't sure if RC and FC were correct in English) TR = total revenue; TC = total costs; FC = ? RC = ?
A) FC = RC
B) TR ‹ TC
C)TR = TC
D) TC = FC + RC

Question

Quizplus · Accepted Answer

The break-even point is the point where total revenue (TR) equals total costs (TC), so the correct equation is TR = TC. FC stands for fixed costs, which are already accounted for in TC. RC is not a commonly used acronym in this context.

The Break-Even Point Is Calculated by Identifying the Volume or Turnover