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4 votes
At the break-even point, total sales equal total variable costs.
a. True
b. False

User Lubor
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1 Answer

4 votes
False.

At the break-even point, total sales equals total variable costs plus the fixed expenses. The fixed expenses must be used to determine the break-event point analysis in order to determine how much the company needs in sales to recoup the fixed and variable costs for production and sales.
User Vinu David Jose
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