What is a firm's total profit exactly at its break-even point?
AEqual to fixed costs
BEqual to contribution
CEqual to total revenue
DExactly equal to zero
Answer & Solution
Correct answer: D. Exactly equal to zero
At break-even revenue exactly covers fixed and variable costs, leaving neither profit nor loss.
Keep practising Integrated Business Solutions
Browse all Integrated Business Solutions questions for CA Final, or explore more Strategic Management topics.
Related questions
In 1988 Mintzberg found the strategic process to be more?The SWOT matrix is also known as?The discount rate that gives a bond's price as NPV is called its?Applied ex-ante, what does the IRR provide?Two projects give equal returns; one pays earlier. Which has higher IRR?Rs 1,21,000 arrives in 2 years. At 10% annual discount, present value?Outlay Rs 1,00,000; inflow Rs 1,10,000 after one year; discount rate 10%. NPV?A profitable firm lacks liquidity if assets cannot be quickly?