On a profit-volume graph,where does the profit line intersect the horizontal axis?

Question

Quizplus · Accepted Answer

The break-even point is the point where the profit line intersects the horizontal axis, as it represents the sales volume at which the company is neither making a profit nor incurring a loss. At this point, the total revenue generated is equal to the total costs incurred, including fixed and variable costs. Therefore, the correct answer is B, which represents the break-even point. Choices A, C, and D do not represent the break-even point and are, therefore, incorrect.

On a Profit-Volume Graph,where Does the Profit Line Intersect the Horizontal