The break-even point on the cost-volume-profit graph is where the ________.
A) total cost line intersects the net profit line
B) total cost line intersects the net loss line
C) revenue line intersects the total cost line
D) revenue line intersects the variable cost line

Question

Quizplus · Accepted Answer

The break-even point is where the revenue line intersects the total cost line. At this point, the revenue earned is equal to the total costs incurred, resulting in zero profit or loss. Option A and B are incorrect as the net profit or net loss line is not used to determine the break-even point. Option D is also incorrect as the break-even point is not determined by the variable cost line alone.

The Break-Even Point on the Cost-Volume-Profit Graph Is Where the ________