Consider the following cost-volume-profit graph: Based on the information in the graph,the break-even point in sales dollars is approximately equal to:
A) $50,000.
B) $30,000.
C) $60,000.
D) $20,000.

Question

Consider the following cost-volume-profit graph:  Based on the information in the graph,the break-even point in sales dollars is approximately equal to:
A) $50,000. 
B) $30,000. 
C) $60,000. 
D) $20,000.

Quizplus · Accepted Answer

The break-even point is the point where the total sales revenue equals the total costs. On the graph, this occurs where the total cost line intersects with the total revenue line. From the graph, we can see that this point is at around $60,000 in sales. Therefore, choice C is the correct answer.

Consider the Following Cost-Volume-Profit Graph: Based on the Information