Which of the following statements is correct about the break-even point?
A. The break-even point is the point where all variable costs are covered (but fixed costs are not).
B. The break-even point quantifies the number of units that must be sold to cover total costs with zero profit.
C. The break-even point is the point where all fixed costs are covered (but variable costs are not).
D. The break-even point is the point where a company achieves its target profit.
Answer: B
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