In cost-volume-profit analysis, a firm "breaks even" when its total revenues:
A) equal variable costs
B) equal total costs
C) equal fixed costs
D) are less than the sum of variable and fixed costs

Question

Quizplus · Accepted Answer

In cost-volume-profit analysis, "break even" point is the level of sales where a company's revenue equals its total expenses. This includes all fixed and variable costs. So, option B - "equal total costs" is the correct answer.

In Cost-Volume-Profit Analysis, a Firm "Breaks Even" When Its Total