Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Financial Mathematics

Question:

The level of production where the revenue from sales is equal to the cost of production and marketing is known as

Options:

the marginal cost point.

the fixed cost point.

the break even point.

the fixed profit point.

Correct Answer:

the break even point.

Explanation:

The correct answer is Option (3) → the break even point.

The break-even point (BEP) is the level of production at which total revenue equals total cost, including production and marketing costs.

At the break-even point, the firm makes neither profit nor loss.