The break-even point occurs where:
A)the firm's fixed expenses equal its variable expenses.
B)the creditors' interest equals the owner's interest in the business.
C)total revenue equals total expenses.
D)assets and liabilities are equal on the balance sheet.

Question

Quizplus · Accepted Answer

The break-even point is the point at which a company's total revenue equals its total expenses. At this point, the company is not making a profit or a loss, but simply breaking even. This point is important for businesses to know because it helps them determine the minimum amount of sales they need to generate in order to cover all their expenses. It can also help them determine pricing strategies and sales targets. Therefore, the correct option is C as it indicates the point of total revenue being equal to total expenses.

The Break-Even Point Occurs Where