Define break-even point and how to calculate it for a salon.

Define break-even point and how to calculate it for a salon.

• A. The maximum profit possible in a year.
• B. The level of sales where total revenue equals total costs; break-even = fixed costs / (1 - variable cost ratio).
• C. The point at which price equals cost of goods sold.
• D. The amount of revenue after tax.

Answer: (B)