The Break-Even Point Is

question 65

Multiple Choice

The break-even point is:

• A)the point where zero contribution margin is earned.
• B)the point where zero profit is earned.
• C)the point where selling price just equals variable cost.
• D)equal to sales revenue less fixed costs.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or service activity, such as materials or labor costs.

Attractive Location

A place considered desirable for living, working, or setting up a business due to its advantages like accessibility, scenery, or economic opportunity.

Fixed Costs

Expenses that do not change in proportion to the level of production or sales, such as rent, salaries, and equipment leases.

Variable Costs

Costs that vary directly with the level of production or output.