Which description determines a product’s break-even point?

Question

(1 point)
Responses

1. units sold equaling per unit price
2. fixed costs minus variable costs
3. resale value multiplied by sales
4. total costs equaling total revenue

Answer 1

The correct description that determines a product’s break-even point is:

4. total costs equaling total revenue.

At the break-even point, a company does not make a profit or a loss; it simply covers all its costs.