The break-even point is the volume 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 point at which the total cost equals total revenue. This means that there is no profit, but there are no losses as well. It is the point where the business breaks even, hence the name break-even point.

The Break-Even Point Is the Volume of Activity Where