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Break-even point occurs when :
Y = S
S = O
Y = C
both (b) and (c)
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:
By: Parvesh Mehta ProfileResourcesReport error
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