Asked by Megan Shook on Jul 17, 2024

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The break-even point is where total sales equal total fixed costs.

Break-Even Point

The point at which total costs equal total revenue, meaning there is no profit or loss.

Total Sales

The aggregate revenue a company generates from selling goods or services within a specified period.

Fixed Costs

Costs that do not fluctuate with changes in production level or sales volume, such as rent, salaries, and insurance.

  • Comprehend the concept of break-even, including how to calculate it and its relevance in making business decisions.
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LT
Lorena TretoJul 20, 2024
Final Answer :
False
Explanation :
The break-even point is where total sales equal total costs (fixed plus variable costs), not just total fixed costs.