What component of the profit equation should be set equal to zero to find the breakeven point?
A)Total sales revenue
B)Total variable costs
C)Total fixed costs
D)Profit

Question

Quizplus · Accepted Answer

The breakeven point is found by setting the profit equal to zero. Profit is calculated as total sales revenue minus total costs (which include both fixed and variable costs). At the breakeven point, a business is not making a profit but is also not incurring a loss.

What Component of the Profit Equation Should Be Set Equal