Which of the following statements is correct about the break-even point?

The break-even point is the point where a company achieves its target profit.

The break-even point is the point where all variable costs are covered (but fixed costs are not).

The break-even point is the point where all fixed costs are covered (but variable costs are not).

The break-even point quantifies the number of units that must be sold to cover total costs with zero profit.