Which of the Following Is Correct? the Break-Even Point Occurs

question 149

Multiple Choice

Which of the following is correct? The break-even point occurs on the Cost-Volume-Profit graph where:

• A) total profit equals total expenses.
• B) total profit equals total fixed expenses.
• C) total contribution margin equals total fixed expenses.
• D) total variable expenses equal total contribution margin.

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Definitions:

Total Product

The total output or production achieved by a firm with a given amount of resources.

Average Product

The output per unit of input, calculated by dividing the total product by the quantity of input, reflecting the efficiency of production.

Marginal Product

The additional output resulting from the use of one more unit of a particular input, holding other inputs constant.

Total Product

The total output produced by a firm or within an economy.