On a cost-volume-profit graph, the break-even point is where:
A) the total revenue line intersects the total fixed cost line.
B) the total revenue line intersects the total cost line.
C) the total revenue line intersects the operating income line.
D) the total revenue line intersects the contribution margin line.
E) All of these are correct.

Question

Quizplus · Accepted Answer

The break-even point is the point where the total revenue line intersects the total cost line. At this point, the company has generated enough revenue to cover all of its costs and has not yet begun to generate a profit.

On a Cost-Volume-Profit Graph, the Break-Even Point Is Where