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

Question

Quizplus · Accepted Answer

The operating breakeven point is the level of production and sales at which a firm's net operating income is equal to zero, meaning its total revenues are exactly enough to cover its total operating costs (both fixed and variable).

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