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Mechanical Engineering · Q85

Industrial Engineering And Production Management

Engineering and GATE · Mechanical Engineering · question 85

Q85

At the break-even point,

A.
Total cost is more than the sales revenue
B.
Total cost is less than the sales revenue
C.
Total cost is equal to sales revenue
Answer
D.
Fixed cost is equal to variable cost

Answer: Option C

Solution

Answer: Option C
Solution:
the break-even point refers to the revenues necessary to cover a company's total amount of fixed and variable expenses during a specified period of time.