The point where the profit line intersects the horizontal axis on the profit-volume 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 profit line intersects the horizontal axis on the profit-volume chart represents the break-even point, which is the level of sales at which total revenues equal total costs and profit is zero. Therefore, choice D is the best answer.

The Point Where the Profit Line Intersects the Horizontal Axis