Abby is marketing consultant who specializes in small businesses. Her current client is very interested in estimating the costs for the coming year, in order to find the breakeven point. Abby knows this is an important financial statistic because below the breakeven point, the firm is operating
A)with fixed costs only.
B)with minimal variable costs.
C)with no revenue.
D)with minimal profit.
E)at a loss.

Question

Quizplus · Accepted Answer

The breakeven point is the point at which a company's total revenue equals its total expenses, resulting in neither a profit nor a loss. Therefore, if a company is operating below the breakeven point, it is operating at a loss.

Abby Is Marketing Consultant Who Specializes in Small Businesses