The break-even point is that at which :
A
The level of activity at which the business operates most economically
B
The level of activity at which the business makes neither a profit nor a loss
C
The fixed costs are lowest
D
The variable cost per unit is minimized
Correct Answer: The level of activity at which the business makes neither a profit nor a loss
Break Even Point means the point in which profit = loss = 0. Its the quantity the company has to sell in terms of avoiding losses and gaining nothing. When the sells crosses the BEP, the company makes profit and vice versa.