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Question
The break-even point is that at which :
The level of activity at which the business operates most economically
The level of activity at which the business makes neither a profit nor a loss
The fixed costs are lowest
The variable cost per unit is minimized
None of these
ANSWER : 2
Descrption
<p>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. </p>
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