By definition, a firm's operating breakeven point represents the level of production and sales at which:
A) additional funds needed equal zero.
B) variable costs equal operating revenue.
C) fixed variable costs equal operating revenue.
D) net operating income equals zero.
E) the cost of equity equals the cost of debt.

Question

Quizplus · Accepted Answer

The operating breakeven point is where total revenue equals total operating costs (fixed and variable), resulting in a net operating income of zero.

By Definition, a Firm's Operating Breakeven Point Represents the Level