Hanalei Fishing Trips is operating at its break-even point of 4,200 fishing trips per year.Which of the following statements is true?

Question

Quizplus · Accepted Answer

At the break-even point, the company's total costs equal its revenues, meaning there is no profit or loss being made. Option B is incorrect because fixed costs and variable costs are two separate categories of costs and do not necessarily have to be equal at the break-even point. Option C is incorrect because profit is not being made at the break-even point. Option D is incorrect because the contribution margin per trip remains the same regardless of the number of trips sold, as it is a fixed amount per unit.

Hanalei Fishing Trips Is Operating at Its Break-Even Point of 4,200