Question

Helen is selling lemonade outside her house. She had calculated her fixed and variable costs for the venture. She found that by selling 25 cups of

lemonade, she was able to earn back the costs that she has put in. Which point has Helen reached?
Helen has reached the
point.

Answer 1

Break-even point

Step-by-step explanation:

The Break-even point is the level of sales where the revenue realized matches the costs incurred. At the break-even point, the business does not make any profits or losses.

Helen has reached the break-even point. By selling 25 cups of lemonade, her revenue equals the total of her fixed and variable costs. A sale of 25 cups does not generate any profits or losses.