The Break-Even Point Can Be Defined As

question 8

Multiple Choice

The break-even point can be defined as:

• A)that volume of sales whereby total revenues from a project are equal to total variable costs.
• B)that volume of sales whereby total revenues from a project are equal to total variable costs plus total fixed and investment costs.
• C)that volume of sales whereby the present value of revenues from a project are equal to the summation of present values of total variable and fixed costs and the initial outlay.
• D)that volume of sales whereby the present value of revenues from a project are equal to the summation of present values of total variable costs.

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Definitions:

Bank

A financial institution licensed to receive deposits and make loans.

Interest Earned

The income received from lending funds or depositing money into interest-bearing accounts.

Invested

To have allocated resources, such as money, toward something with the expectation of generating income or profit.

Deposited

The act of placing money or another form of value into an account.