Question

Break Even point represents

• A. Profit
• B. LOSS
• C. No Profit and No Loss
• D. None of these

Answer 1

Answer:

C. No Profit and No Loss

Break-even point is the production volume where total cost equals total sales revenue, resulting in no profit or loss. It is also known as the no profit-no loss point. The formula to calculate BEP is Break Even Point = Total Fixed cost /(Selling cost per unit-Variable cost per unit)