What is the break-even point?
A)the point at which total sales are greater than total cost
B)the point at which total sales equal total cost
C)the point at which fixed costs equal variable costs
D)the point at which total sales are less than total cost

Question

Quizplus · Accepted Answer

The break-even point is the point at which total sales equal total cost. This means that a company has sold enough products or services to cover all of its expenses, but has not yet made a profit. At this point, any additional sales will result in a profit for the company. Therefore, the best choice is B, the point at which total sales equal total cost.

What Is the Break-Even Point