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The break-even point is whenA)the company is earning a small profit.B)total sales equal variable costs.C)total sales equals operating income.D)the company is operating at a loss.E)total revenue equals total cost.

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Answer:

The correct answer is letter "E": total revenue equals total cost.

Explanation:

In Economics, The Break-Even Point or BEP takes place when total costs of production equal the total revenue from sales. If a company ends the period at the BEP, it implies there will be no net profit for that year. While talking about investments, the BEP is the point in which an entrepreneur recovered the amount of the initial investment but there are no profits yet.

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