What does a break-even point of 100 units mean to a firm?
A) The firm must sell 100 units to maximize its profits.
B) Fixed costs plus variable costs equals 100 units.
C) By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs.
D) If the firm sells 100 units, its total revenues will equal its total costs.

Question

Quizplus · Accepted Answer

The break-even point is the sales volume where revenues from sales equal all costs.

What Does a Break-Even Point of 100 Units Mean to a Firm