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nignag [31]
3 years ago
11

The break-even point is that level of activity where: Multiple Choice a) total revenue equals total cost. b) variable cost equal

s fixed cost. c) total contribution margin equals the sum of variable cost plus fixed cost. d) sales revenue equals total variable cost. e) profit is greater than zero.
Business
1 answer:
shtirl [24]3 years ago
3 0

Answer:

a) total revenue equals total cost.

Explanation:

The break-even point is the level of activity in which total revenue equals total cost. It can also be defined in terms of  units sold for a year is as the fixed expenses for the year divided by the contribution margin per unit of product. Note that exactly at the break-even point, there is no profit or loss.

Therefore, the answer is alternative a).

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