The break-even point is when
A) the company is operating at a loss.
B) total revenue equals total cost.
C) the company is earning a small profit.
D) total sales equal variable costs.
E) total sales equals operating income.

Question

Quizplus · Accepted Answer

The break-even point is the point at which total revenue equals total cost, and the company is neither making a profit nor a loss. This means that all expenses, including fixed and variable costs, have been covered by the sales revenue.

The Break-Even Point Is When