In a break-even problem, what is the relationship between total revenues and total costs at the break-even point?
A) Total revenues are greater than total costs
B) Total revenues are less than total costs
C) Total revenues are equal to total costs
D) It is impossible to know the relationship between total revenues and total costs at the break-even point

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenues equal total costs. This means that the company is neither making a profit nor a loss at this point. Therefore, total revenues and total costs are equal at the break-even point.

In a Break-Even Problem, What Is the Relationship Between Total