The point of zero profit is called the:
A)profit-volume point.
B)contribution-margin point.
C)break-even point.
D)target-profit point.

Question

Quizplus · Accepted Answer

The break-even point is the point at which a company's total revenues equal its total costs and the company is not making a profit or loss. This is also referred to as the point of zero profit. Choice A refers to the sales level at which a company begins to make a profit, Choice B refers to the amount of revenue that remains after deducting variable costs and is not applicable in this context, and Choice D refers to the sales level required to achieve a specific target profit, which is not relevant to the point of zero profit.

The Point of Zero Profit Is Called The