The firm's operating break-even point is the point at which
A) EBIT is less than sales.
B) total operating costs equal total fixed costs.
C) EBIT is zero.
D) total operating costs are zero.

Question

Quizplus · Accepted Answer

The firm's operating break-even point is the level of sales at which Earnings Before Interest and Taxes (EBIT) is zero, meaning total revenue equals total operating costs.

The Firm's Operating Break-Even Point Is the Point at Which