Refer to the saving schedule above. The break-even income would be level:
A) 0
B) 1
C) 2
D) 3

Question

Refer to the saving schedule above. The break-even income would be level:
A) 0 
B) 1 
C) 2 
D) 3

Quizplus · Accepted Answer

The break-even income is the income level at which the total savings (orange line) equals the total expenditures (green line). From the graph, it can be observed that the savings line intersects the expenditure line at point 2 on the horizontal axis, which corresponds to an income level of $2000 per month. Therefore, the break-even income level is 2. Choice C is the correct answer.

Refer to the Saving Schedule Above