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The break-even point is the point at which... Question 1 options: The point at which revenues...

The break-even point is the point at which...

Question 1 options:

The point at which revenues meet the budget target.

The sales volume at which revenues equal variable cost and profit is zero.

The sales volume at which revenues equal total cost plus an operating profit of zero.

The sales volume at which the total contribution margin exceeds total variable costs.

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Homework Answers

Answer #1

The break-even point is the point at which:

The sales volume at which revenues equal total cost plus an operating profit of zero.

Third option is the Correct option.

At the break even level, sales revenue is equal to the total cost and thus there are no profits or losses to the firm.

Any sales beyond the break even point, provides profits to the firm and sales less than break even point generates losses.

Kindly ask if you have any query related to the question. Thank you.

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