ECONOMICS

Detailed explanation-1: -Answer and Explanation: The given statement is true. BEP (Break-even point): It is the point at which the costs and sales are equal.

Detailed explanation-2: -The correct answer is ‘True. ‘ Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold. If revenues minus all expenses (fixed and variable, and including cost of goods sold) equals zero, you are at the break-even point.

Detailed explanation-3: -Total profit at the break-even point is zero.

Detailed explanation-4: -The break-even point is essential for business owners because it represents the minimum level of sales that must be achieved to generate a profit. If a business owner knows the break-even point, they can make informed decisions about pricing, production levels, and other factors that impact the bottom line.

Detailed explanation-5: -The breakeven point is the level of production at which the costs of production equal the revenues for a product. In investing, the breakeven point is said to be achieved when the market price of an asset is the same as its original cost.