Question

Financially speaking, what is a breakeven point?

A. The point where consumer demand and inventory are exactly even

B. The point where you are neither making nor losing money

C. The point where employees have reached minimum levels of training and can no become productive.

D. The point where you get revenge on your competitors by getting even.

E. None of the above represent the definition of a breakeven point.

Answer 1

Ans) the correct option is B. The point where you are neither making nor losing money

Break even is a point where total revenue is equal to total cost which means total profit is zero. At break even point, there is no profit and no loss.