GK
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Total Revenue = Total cost
|
|
|
Total Revenue < Total cost
|
|
|
Total Revenue > Total cost
|
|
|
None of the above
|
Detailed explanation-1: -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-2: -The breakeven point is that point where total revenue equals total costs or expenses. The point represents the level of sales where the business makes neither a profit nor a loss. Additional sales beyond this point will result in profits.
Detailed explanation-3: -What is Break-Even Analysis? Break-even analysis in economics, business and cost accounting refers to the point in which total costs and total revenue are equal. A break-even point analysis is used to determine the number of units or dollars of revenue needed to cover total costs (fixed and variable costs).