The amount by which sales can decrease before the company incurs an operating loss is called breakeven point.

Name: The amount by which sales can decrease before the company incurs an operating loss is called breakeven point.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The amount by which sales can decrease before the company incurs an operating loss is called the margin of safety, not the breakeven point. The breakeven point is the level of sales at which total revenues equal total expenses, resulting in zero profit.

The Amount by Which Sales Can Decrease Before the Company