The break-even equation is developed by which of the following?
A) Setting total profit equal to total costs
B) Setting total revenues equal to total costs
C) Setting total profit equal to total revenues
D) Setting total revenue equal to total loss

Question

Quizplus · Accepted Answer

The break-even equation is developed by setting total revenues equal to total costs, as this is the point where a company is neither making a profit nor a loss. The equation is typically expressed as:
Total Revenue = Total Costs
or
Price x Quantity = Fixed Costs + Variable Costs x Quantity

The Break-Even Equation Is Developed by Which of the Following