At the breakeven sales volume:
A) Profits are zero.
B) Losses are equal to fixed costs.
C) Profits are equal to variable costs.
D) Losses are equal to variable cost times units sold.

Question

Quizplus · Accepted Answer

At the breakeven sales volume, a business is not making a profit but also not incurring a loss, meaning its total revenues are exactly equal to its total costs (including both fixed and variable costs). This results in profits being zero.

At the Breakeven Sales Volume