Answer to Question #73117 in Microeconomics for mog

Question

at break even point

Answer 1

Break-even is the point of zero loss or profit. Break-even point can be calculated
by equation method, contribution method or graphical method. The equation
method is based on the cost-volume- profit (CVP) formula:
px = vx + FC + Profit
At break-even point, the revenues of the business are equal its total costs and its
contribution margin equals its total fixed costs.