In a cost-volume-profit graph the break-even point will be found:

Question

Quizplus · Accepted Answer

The break-even point is where the total income equals the total fixed plus total variable costs, which means that the company is not making a profit or a loss at this point. This is the point where the cost-volume-profit graph intersects the x-axis. Therefore, option C is the correct answer. Option A is incorrect because it refers to the calculation of the predetermined overhead rate but does not relate to the break-even point. Option B is incorrect because it refers only to total fixed costs and does not consider variable costs. Option D is incorrect because it refers only to the intersection of the total income and total fixed costs lines and again does not consider variable costs.

In a Cost-Volume-Profit Graph the Break-Even Point Will Be Found