Question

If unit outputs exceed the breakeven point? ________.

a. total sales revenue will exceed variable costs
b. total sales revenue will exceed fixed costs
c. there will be a profit
d. there will be an increase in fixed costs

Answer 1

If unit outputs exceed the breakeven point: there will be a profit
Break events point refers to a condition when the company is able to gain enough income to cover all the expenses that made for the products to be distributed for the consumers.
If the unit output surpasses break event points, we can conclude that the sales are already surpassed the total cost.