The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the:
A) break-even point.
B) fixed cost margin.
C) contribution per unit.
D) unit cost.
E) marginal revenue.

Question

Quizplus · Accepted Answer

The point at which total revenue equals total costs is the break-even point, where the business has not made a profit but has not suffered a loss either. It is an important milestone for any operational or financial decision-making. Therefore, option A is the correct answer. Fixed cost margin, contribution per unit, unit cost, and marginal revenue are all related to break-even analysis, but they are not the same as the break-even point.

The Point at Which the Number of Units Sold Generates