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.