Explanation:

Let’s break down the statements:

- Option 1: Y = S

This is pretty vague—without knowing what Y or S stand for, you can’t really say this has anything to do with a break-even point.

- Option 2: S = O

Here’s the thing: if S means sales and O means output, this doesn’t hit the mark for break-even either. Sales will usually correspond to output but break-even isn’t about matching those two exactly.

- Option 3: Y = C

This is the one that counts. If Y is income (or revenue) and C is cost, then when revenue equals cost, you’re at break-even. No profit, no loss. That’s the classic definition.

- Option 4: both (b) and (c)

Only Option 3 is actually correct. Option 2 doesn’t fit. So, saying both (b) and (c) is not right.

Correct Answer:

- Option 3: Y = C