Break-even Analysis

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The break-even point is the production level at which:

A.Profit is maximized

B.Total revenue equals total cost

C.Fixed costs are zero

D.Variable cost is zero

Fixed costs are $5,000, the unit selling price is$ 10, and the variable cost is $5 per unit. What is the break-even quantity?

A.1,000 units

B.500 units

C.2,000 units

D.250 units

At a project's break-even point, the profit is:

A.Maximum

B.Zero

C.Negative

D.Equal to fixed cost

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