Question
The __ is the amount of revenue required to cover expenses. Profit Margin Break Even Point Profit Goal Revenue Benchmark
Answer
3.7
(179 Votes)
Aderyn
Elite · Tutor for 8 years
Answer
B. Break Even Point
Explanation
The question is asking for the term that describes the level of revenue that a company must achieve to cover all of its expenses. This concept is crucial for businesses to understand, as it indicates the point at which the company neither makes a profit nor suffers a loss. The correct term is not directly related to profit margin, which is a measure of profitability calculated as net income divided by revenue. It is also not "Proft Gost," which appears to be a typographical error and does not correspond to a known financial term. "Revenue Benchmark" is a general term that could refer to any standard or point of reference for revenue, but it does not specifically denote the revenue needed to cover all expenses. The correct term is "Break Even Point," which is the exact amount of revenue needed to equal total expenses. At the break-even point, a company does not make a profit or incur a loss.