Question

The break-even point is where the ____ line crosses the ____ line in a graphic break-even analysis. Select one:
a. fixed costs; total sales revenue
b. short-term costs; long-term costs
c. incremental costs; variable costs
d. fixed costs; variable costs
e. total costs; total sales revenue

Answer 1

Answer:

The correct answer is E) Total costs, total sales revenue

Explanation:

The break even point is simply the point where the total cost of production is equal to the total revenue that you get from sales. This is in theory, the minimum point at which a firm can operate, although, it is not by all means the point at which a firm will want to stay, because at this point the profit is zero.