In a manufacturing industry, breakeven point occurs, when the___________________?
Correct answer: D. Total annual product cost equals the total annual sales
- A. Total annual rate of production equals the assigned value
- B. Annual sales equals the fixed cost
- C. Annual profit equals the expected value
- D. Total annual product cost equals the total annual sales
Explanation
At the break-even point, revenue exactly covers total costs, so there is neither profit nor loss. Therefore, total annual sales equal total annual product cost.
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