Asked by Kayla Lippoldt on May 31, 2024
Verified
In the breakeven diagram, breakeven is at the intersection of revenue and total cost.
Breakeven Diagram
A graphical representation that shows the point at which total cost and total revenue are equal, with no net loss or gain.
Total Cost
The complete cost of production that includes both fixed and variable costs.
Breakeven
The point at which total costs and total revenues are equal, resulting in no net loss or gain.
- Identify and interpret the breakeven point in breakeven analysis.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
True
Explanation :
This is because the breakeven point represents the point at which total revenue equals total cost, and hence it is the point of intersection between the revenue and total cost lines in the breakeven diagram.
Learning Objectives
- Identify and interpret the breakeven point in breakeven analysis.
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