The break-even point ________.
A)occurs where a company's total revenue equals its total expenses
B)is the point at which a company neither earns a profit nor incurs a loss
C)tells a business owner the minimum level of activity needed to keep her company in operation
D)All of the above

Question

Quizplus · Accepted Answer

The break-even point is the level of production or sales at which a company neither earns a profit nor incurs a loss. It occurs where a company's total revenue equals its total expenses. Knowing the break-even point is crucial for a business owner because it tells her the minimum level of activity needed to keep her company in operation. Therefore, all of the options are correct.

The Break-Even Point ________