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

Question

Quizplus · Accepted Answer

The break-even point is the point where the total income earned equals the total fixed costs plus the total variable costs. It means the company is not making any profits or losses. At this point, the contribution margin is equal to the fixed costs. The break-even point is where the total revenue line intersects the total fixed costs plus total variable costs line. Hence, option C is correct. Option A is not correct because the predetermined overhead rate is not used to determine the break-even point. Option B is incorrect because it does not take into account the variable costs. Option D is incorrect because it only considers the fixed costs and does not take into account the variable costs.

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