Break-even quantity is a point where
A)Level of profit is maximized
B)Level of cost is minimized
C)Only variable costs are covered
D)There is neither a profit nor a loss

Question

Quizplus · Accepted Answer

Break-even quantity refers to the level of output at which a company neither earns a profit nor incurs a loss. In other words, it is the point where total revenue equals total costs, including fixed and variable costs. Therefore, the correct choice is D - there is neither a profit nor a loss.

Break-Even Quantity Is a Point Where