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    Question

    Breakeven point is determined by

    A MC = MR Correct Answer Incorrect Answer
    B MC = AVC Correct Answer Incorrect Answer
    C MC = AC = AR Correct Answer Incorrect Answer
    D TR = TC Correct Answer Incorrect Answer

    Solution

    In accounting, the breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production. The breakeven point is the level of production at which the costs of production equal the revenues for a product. It is that point of output level of the firm where firms total revenues are equal to total costs (TR = TC).

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