Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Calculus

Question:

The break-even point is the level of production where

Options:

the revenue from sales is less then the cost of production and marketing.

the revenue from sales is equal to the cost of production and marketing.

the revenue from sales is greater then the cost of production and marketing.

the sum of revenue from sales and the cost of production and marketing is zero

Correct Answer:

the revenue from sales is equal to the cost of production and marketing.

Explanation:

The correct answer is Option (2) → the revenue from sales is equal to the cost of production and marketing. **

The break-even point is the production level where:

Profit = Loss = 0

Revenue from sales = Cost of production and marketing.