If unit outputs exceed the break-even point:
A)total sales revenue exceeds total costs.
B)there is a profit.
C)there is a loss.
D)both total sales revenue exceeds total costs and there is a profit.

Question

Quizplus · Accepted Answer

If unit outputs exceed the break-even point, it means that the company is selling more than the minimum quantity required to cover its total costs. Therefore, the total sales revenue will exceed the total costs, resulting in a profit. So, both options B and A are correct, and the best choice is D, as it includes both options.

If Unit Outputs Exceed the Break-Even Point