Q37
The break-even point represents
A.
The most economical level of operation of any industry
B.
The time when unit can run without any loss and profit
AnswerC.
Time when industry will undergo loss
D.
The time when company can make maximum profits
Answer: Option B
Solution
Answer: Option B
Solution:
The break-even point determines the number of sales needed to achieve a net income of zero. It shows the point when a company's revenue equals total fixed costs plus variable costs, and its fixed costs equal the contribution margin.