The Breakeven Point Is the Point at Which

question 94

Multiple Choice

The breakeven point is the point at which:

• A)total contribution margin equals total fixed costs
• B)total fixed costs equal total variable costs
• C)the total revenue line intersects the Y axis
• D)the total cost line intersects the X axis

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Definitions:

Account Balances

The amount of money in a financial repository at any given moment, which can change with deposits and withdrawals.

Deposits

Sums of money placed into an account in a bank or other financial institution, typically earning interest and used for saving or as collateral.

Fully Depreciated

An asset's state when it has amortized or written off its entire initial cost over its useful life, leaving it with a book value of zero or minimal value.

Asset

An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide future benefit.