Paper 1 · November 2023 · Break-even analysis
The following diagram shows the break-even chart.
(Diagram: a Cost/Revenue vs Output chart. The Total Revenue line rises from the origin O. The Total Costs line rises from point D on the Cost/Revenue axis (the fixed costs level) and runs parallel below the Total Revenue line at first. The Fixed Costs line is horizontal at the level of D. The Total Revenue and Total Costs lines cross at point B. The Total Revenue line crosses the horizontal Fixed Costs line at point C. Point A is marked between the Total Revenue and Total Costs lines, to the right of B.)
Which point A, B, C or D on the diagram shows the break-even point?
ZIMSEC Accounting 6001/1 Paper 1 (Multiple Choice), November 2023, Q36