The breakeven point on a CVP graph is the point where the sales revenue line intersects the total cost line.

Question

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This is a correct definition of the breakeven point on a CVP (cost-volume-profit) graph, which is a graphical representation of the relationship between sales volume, costs, and profits. The breakeven point represents the level of sales at which a business neither earns a profit nor incurs a loss, as its total revenue equals its total costs. Below the breakeven point, the business operates at a loss, while above it, the business earns a profit.

The Breakeven Point on a CVP Graph Is the Point