Consider the following cost-volume-profit graph: Based on the information in the graph, the breakeven 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 breakeven point in sales dollars is approximately equal to:

A)$50,000. 
B)$30,000. 
C)$60,000. 
D)$20,000.

Quizplus · Accepted Answer

The breakeven point is where the total cost and total revenue intersect. In this graph, the breakeven point is at the point where the Total Cost line intersects with the Total Revenue line, which is approximately at $60,000 in sales dollars. Therefore, the correct answer is choice C.

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