Suppose that the break-even point (BEP)for a given product is 200 units.This means that if 198 units are produced,then this product is not profitable.

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which the company neither makes a profit nor incurs a loss. If the break-even point is 200 units, then producing 198 units will not be profitable as the company will not be able to cover its fixed costs and make a profit. Therefore, option A is true.

Suppose That the Break-Even Point (BEP)for a Given Product Is