The point at which the number of units sold generates enough revenue to equal the total costs of running an operation is known as the
A) contribution per unit.
B) fixed cost margin.
C) break-even point.
D) unit cost.
E) marginal revenue.

Question

Quizplus · Accepted Answer

The break-even point refers to the level of sales at which a company neither makes a profit nor incurs a loss. At this point, the total revenue earned is equal to total costs incurred. Therefore, option C is the correct answer. The other options are not appropriate because contribution per unit, fixed cost margin, unit cost, and marginal revenue are not directly related to the point at which a company breaks even.

The Point at Which the Number of Units Sold Generates