Profits and losses are equal
No profit no loss
Profits are higher than losses
Losses are higher than profits
Answer is Right!
Answer is Wrong!
The correct answer is A. Profits and losses are equal.
Break-even point (BEP) is the point at which a company’s total revenue equals its total costs. At this point, a company’s income is equal to its expenses, and it neither makes a profit nor incurs a loss.
Option B is incorrect because it does not accurately describe the break-even point. A company can have a break-even point even if it is not making a profit.
Option C is incorrect because it does not accurately describe the break-even point. A company can have a break-even point even if it is not making a profit.
Option D is incorrect because it does not accurately describe the break-even point. A company can have a break-even point even if it is not making a profit.