The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents the
A) maximum possible operating loss
B) maximum possible operating income
C) total fixed costs
D) break-even point

Question

Quizplus · Accepted Answer

The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents the break-even point, which is the level of sales at which total revenue equals total costs, and there is neither profit nor loss. Therefore, the best choice is (D).

The Point Where the Sales Line and the Total Costs