Practice question

What does a coach operator's 'break-even point' represent?

  1. The point at which the vehicle requires its first major service
  2. The level of revenue or passengers at which total revenue equals total cost, giving neither profit nor loss
  3. The maximum number of passengers the vehicle can carry
  4. The mileage at which the vehicle must be replaced

Answer: B — The level of revenue or passengers at which total revenue equals total cost, giving neither profit nor loss

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