# ECONOMICS

## COST ACCOUNTING

### BREAK EVEN POINT

 Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
The amount of revenue needed to cover fixed and variable costs so that a business breaks even is called
 A Break even sales dollars. B Loss. C Total cost. D Break even sales units.
Explanation:

Detailed explanation-1: -In accounting, the breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production. The breakeven point is the level of production at which the costs of production equal the revenues for a product.

Detailed explanation-2: -Your break-even point is equal to your fixed costs, divided by your average price, minus variable costs. Basically, you need to figure out what your net profit per unit sold is and divide your fixed costs by that number. This will tell you how many units you need to sell before you start earning a profit.

Detailed explanation-3: -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.

Detailed explanation-4: -Definition. Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm. Variable cost is referred to as the type of cost that will show variations as per the changes in the levels of production. Nature of cost.

Detailed explanation-5: -A firm’s break-even point occurs when at a point where total revenue equals total costs.

There is 1 question to complete.