Question

Breakeven point is defined as:

The number of units where cost is minimized



The intersection of the cost and profit lines



The number of units where profit = 0.



The dollar amount of revenue minus cost

Answer 1

Answer:The number of units where profit is zero

Explanation:

Break even point is the point where total profit is zero i.e. total expense is equal to the total revenue.

Before break even point a firm is at loss while after break even point a firm starts generating profit.

Mathematically it is given by

`x=(F)/(s-v)`

where x=no of units at break even point

F=fixed cost

s=sale's cost

v=variable cost