A firm would conduct operating breakeven analysis primarily to determine the:
A)minimum value of assets that it should hold to achieve profitability.
B)maximum amount of the total assets that should be financed with debt.
C)minimum earnings that should be retained and the earnings that should be paid out as dividends.
D)level of capacity utilization required to achieve its forecasted sales level.
E)level of sales a new product must achieve to be profitable.

Question

Quizplus · Accepted Answer

Operating breakeven analysis is used to determine the level of sales at which a product or business will be profitable, by covering all its operating expenses.

A Firm Would Conduct Operating Breakeven Analysis Primarily to Determine