The breakeven point is
A)where fixed and variable costs reach the upper level of the relevant range.
B)the level of activity where all fixed costs are recovered.
C)the level of activity where total revenue are the same as total fixed costs.
D)the level of activity where the operating profits equal the variable costs.

Question

Quizplus · Accepted Answer

The breakeven point is the level of activity where all fixed costs are recovered, meaning total revenue equals total costs (fixed and variable), resulting in zero profit.

The Breakeven Point Is