The financial breakeven point is the level of _____ at which earnings per share (EPS) is equal to zero.
A)net operating income (NOI)
B)retained earnings
C)taxes
D)net income
E)interest payments

Question

The financial breakeven point is the level of _____ at which earnings per share (EPS) is equal to zero. 
A)net operating income (NOI)
B)retained earnings
C)taxes
D)net income
E)interest payments

Quizplus · Accepted Answer

The financial breakeven point is the level of net operating income (NOI) at which earnings per share (EPS) is equal to zero. This means that all expenses, including interest payments and taxes, have been covered by the revenue generated from sales, leaving just enough to cover the cost of goods sold and overhead expenses. Retained earnings, net income, and taxes are not directly related to the financial breakeven point.

The Financial Breakeven Point Is the Level of _____ at Which