At the break-even point, profits on the sale of a product are
Blank
______.

Question

At the break-even point, profits on the sale of a product are 
Blank
______.

BlackTom AI · Accepted Answer

Question restatement: At the break-even point, profits on the sale of a product are Blank ______.

Option 1: zero
This is the standard definition of break-even — total revenues equal total costs, so profit equals zero. The business covers all variable and fixed costs but does not earn an excess.

Option 2: enough to justify launching the product
This describes a scenario where profits are positive and substantial enough to justify the venture, which would be beyond break-even. At break-even, profits are not yet positive, so this statement is incorrect.

Option 3: optimal
Optimal implies a best or maximum favorable outcome, which is not what break-even represents. Break-even is simply the point where profits are zero, not where profits are maximized or optimized.

Option 4: sufficient to meet the firm's goals
If profits were sufficient to meet goals, we would expect a positive margin beyond covering costs. Break-even does not imply meeting earnings targets or goals beyond covering costs; it merely indicates no profit or loss. This makes the statement inaccurate for the break-even condition.

In summary, the crucial idea is that break-even means total revenue equals total cost, yielding zero profit. The other options mischaracterize what break-even signifies by implying positive profits, optimization, or goal attainment at that point.

At the break-even point, profits on the sale of a product are Blank ______.

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