The breakeven point is the activity level where:
A)revenues equal fixed costs
B)revenues equal variable costs
C)contribution margin equals variable costs
D)revenues equal the sum of variable and fixed costs

Question

Quizplus · Accepted Answer

The breakeven point is the level of activity where a company's total revenues equal the sum of its variable costs and fixed costs. At this point, there is no profit or loss, and the company is just breaking even. Therefore, choice D - revenues equal the sum of variable and fixed costs - is the correct answer.

The Breakeven Point Is the Activity Level Where