[amp_mcq option1=”total cost” option2=”total revenue” option3=”no profit no loss” option4=”contribution” correct=”option3″]
The correct answer is C. no profit no loss.
The break-even point is the point at which a company’s total revenue equals its total costs. At this point, the company makes neither a profit nor a loss.
Option A, total cost, is the total amount of money that a company spends to produce its goods or services. Option B, total revenue, is the total amount of money that a company receives from selling its goods or services. Option D, contribution, is the amount of money that a company makes from selling its goods or services after accounting for variable costs.