A break-even point occurs when:

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which total revenue equals total costs (both fixed and variable costs). Therefore, option B is the correct choice as it states that sales revenue equals the total of variable and fixed costs of production. Option A is incorrect as it only refers to variable and fixed costs, without considering sales revenue. Option C is incorrect as it refers to the financial position (assets and liabilities) rather than the break-even point. Option D is incorrect as it only refers to variable costs and not fixed costs.

A Break-Even Point Occurs When