Which One of the Following Describes the Break-Even Point

question 24

Multiple Choice

Which one of the following describes the break-even point?

• A)It is the point where total sales equal total variable plus total fixed costs.
• B)It is the point where the contribution margin equals zero.
• C)It is the point where total variable costs equal total fixed costs.
• D)It is the point where total sales equal total fixed costs.

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Definitions:

Private Sector

The part of the economy that is run by private individuals and companies, rather than the government, and is driven by profit.

Public Sector

The part of the economy that is controlled by the government and includes government services and entities.

Profit And Loss

The financial statement that summarizes revenues, costs, and expenses to show the net profit or loss of a business over a specific time period.

Negative Externalities

Costs suffered by a third party as a result of an economic transaction, which are not reflected in the transaction's price, such as pollution caused by manufacturing.