Question

    A break-even point is one

    where: 
    A There is no loss and no profit to the firm Correct Answer Incorrect Answer
    B Total revenue = total cost Correct Answer Incorrect Answer
    C Contribution = fixed cost Correct Answer Incorrect Answer
    D A and B Correct Answer Incorrect Answer
    E A, B and C Correct Answer Incorrect Answer

    Solution

    Sol: Break Even Point is the point where there is no profit or loss for the firm. This is where the firm’s total revenue is equal to total cost. Sales – Variable cost = Contribution Contribution – fixed cost = Profit Therefore, the point where contribution will be equal to fixed cost is the point of no profit and no loss i.e. Break Even Point Therefore, all the statements are correct.

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