On a CVP graph, the total cost line intersects the total revenue line at which of the following points?

Question

Quizplus · Accepted Answer

The break-even point is the level of activity where the total revenue equals total cost, which means the company is not making a profit nor incurring a loss. At this point, the total cost line intersects the total revenue line, indicating that the company has generated enough revenue to cover all of its costs. Therefore, the break-even point is the point of equilibrium, where the company is neither making a profit nor incurring a loss. Thus, C is the correct answer.

On a CVP Graph, the Total Cost Line Intersects the Total