Asked by Chloe Summerville on May 29, 2024
Verified
The break-even point is that level of activity where
A) total revenue equals total cost.
B) total revenue equals fixed cost.
C) total revenue equals variable cost.
D) total revenue equals product cost.
Break-Even Point
The production level at which total revenues equal total expenses, and there is neither profit nor loss.
Total Revenue
The total income generated from business activities before any expenses are subtracted.
Total Cost
Represents the complete amount of expenses incurred by a business in producing goods or services.
- Find the break-even points in the context of unit volume and sales finance.
Verified Answer
LG
Lakyra GarthJun 02, 2024
Final Answer :
A
Explanation :
The break-even point is the level of activity where total revenue equals total cost, meaning there is no profit or loss. It is the point at which a business has covered all its expenses and is neither making a profit nor incurring a loss. Therefore, the best choice is A.
Learning Objectives
- Find the break-even points in the context of unit volume and sales finance.