The break-even point is achieved when which of the following occurs?

The break-even point is a critical concept in business and finance that represents the moment when a company's total revenue matches its total costs. This means that the business is neither making a profit nor incurring a loss at that point. Understanding this helps businesses set sales targets, control costs, and manage pricing strategies to ensure profitability.

When total revenue equals total cost, any additional sales beyond this point will contribute to profit, while sales below this threshold will result in a loss. This metric is essential for financial planning and analysis, as it allows businesses to assess the minimum sales volume required to avoid losses, and ultimately informs pricing, budgeting, and strategic planning decisions.

The other options do not accurately reflect the break-even point. For instance, having variable costs exceed fixed costs doesn't determine profitability; instead, it suggests a cost structure that may affect revenue levels. The concept of demand being perfectly elastic relates to market dynamics rather than a firm's profitability metrics. Finally, selling below production costs signifies a loss, not a break-even situation. Thus, recognizing the condition of total revenue equaling total cost is key to understanding and identifying the break-even point in business contexts.