ECONOMICS

Detailed explanation-1: -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-2: -The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. In other words, you’ve reached the level of production at which the costs of production equals the revenues for a product.

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

Detailed explanation-4: -The break-even point is the point at which total revenue is equal to total cost. At this point, the profit is zero. (A particular company neither makes nor loses money at this point). There are two types of costs to consider: variable and fixed.

Detailed explanation-5: -Break-even point is that point where the producer is able to recover the total cost of production through sale of output and incurs no profit or loss.