On a cost-volume-profit graph,at the point where the Total Revenue line intersects the Total Cost line,________.
A) net income is positive
B) net income is negative
C) net income is zero
D) not enough information is given

Question

Quizplus · Accepted Answer

The point at which the Total Revenue line intersects the Total Cost line is known as the breakeven point. At this point, total revenue equals total cost, and therefore, net income is zero.

On a Cost-Volume-Profit Graph,at the Point Where the Total Revenue