On a break-even chart, the point where total costs equal total revenue is called

On a break-even chart, the point where total costs equal total revenue is called

• A. Break-even quantity
• B. Margin of safety
• C. Break-even point
• D. Profit

Answer: (C)

On a break-even chart, the total-cost line and the total-revenue line cross at the point where costs equal revenue, meaning profit is zero. That crossing is called the break-even point. The quantity at which this happens is the break-even quantity, but the standard term for the intersection itself is break-even point. The margin of safety measures how far actual or forecast sales are above that point, and profit would be positive only above the break-even point.

On a break-even chart, the total-cost line and the total-revenue line cross at the point where costs equal revenue, meaning profit is zero. That crossing is called the break-even point. The quantity at which this happens is the break-even quantity, but the standard term for the intersection itself is break-even point. The margin of safety measures how far actual or forecast sales are above that point, and profit would be positive only above the break-even point.