Question : Break-even point refers to that point where :
Option 1: Total Costs are half of the Total Sales
Option 2: Total Costs are less than Total Sales
Option 3: Total Cost are equal to total sales
Option 4: Total Costs are more than Total Sales
Answer (1)
10th Jan, 2024
Correct Answer: Total Cost are equal to total sales
Solution : The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in production where the revenue from a product equals the cost of manufacture.
Hence the correct answer is option 3.
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