At breakeven point, ________.
A) operating income is equal to zero
B) contribution margin minus fixed costs is equal to profits earned
C) revenues equal fixed costs minus variable costs
D) breakeven revenues equal fixed costs divided by the variable cost per unit

Question

Quizplus · Accepted Answer

At the breakeven point, a business's operating income is zero because its total revenues are exactly equal to its total costs (both fixed and variable).

At Breakeven Point, ________