What does a break-even point of 100 units mean?

Question

Quizplus · Accepted Answer

The break-even point is the point at which the total revenue equals total cost. Therefore, if the firm sells 100 units, its total revenues will equal total costs, which means it has reached the break-even point. Therefore, option D is the correct answer. Options A and C are incorrect because they suggest that producing 100 units will cancel out fixed costs or equal total costs, respectively, but they do not necessarily lead to breaking even. Option B is also incorrect because maximizing profits is not necessarily the same as reaching the break-even point.

What Does a Break-Even Point of 100 Units Mean