"Break-even point" is the point of intersection of_____________________?
Correct answer: B. Total cost and sales revenue
- A. Fixed cost and total cost
- B. Total cost and sales revenue
- C. Fixed cost and sales revenue
- D. None of these
Explanation
At the break-even point, total revenue exactly equals total cost, so there is neither profit nor loss. The intersection of fixed cost and revenue is not the break-even condition because variable costs are omitted.
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