Question

Break-even point is

• A. Sales at which there is no profit or loss
• B. Sales at which profit is high
• C. Sales at which there is high overheads
• D. Sales at which there is loss

Hint:

The break-even point helps businesses determine the minimum sales required to avoid losses.

Answer 1

The Correct Option is A

The break-even point is the level of sales at which total revenues equal total costs, resulting in no profit or loss. This is a critical measure for understanding when a business becomes profitable. Businesses use the break-even point to assess the viability of their operations and determine the minimum sales required to avoid losses.