A firm's financial breakeven point is defined as the operating income (NOI) at which its _____ is(are) equal to zero.
A)earnings before interest and taxes (EBIT)
B)sales
C)earnings per share (EPS)
D)fixed financial costs
E)gross profit

Question

A firm's financial breakeven point is defined as the operating income (NOI) at which its _____ is(are) equal to zero. 
A)earnings before interest and taxes (EBIT)
B)sales
C)earnings per share (EPS)
D)fixed financial costs
E)gross profit

Quizplus · Accepted Answer

The financial breakeven point is the level of operating income needed to cover all fixed financial costs, resulting in zero earnings per share (EPS).

A Firm's Financial Breakeven Point Is Defined as the Operating