The term that is used to identify the quantity of output sold at which total revenues equal total costs and that quantity of output sold that results in $0 operating income is:

Question

Quizplus · Accepted Answer

Breakeven point (BEP) is the quantity of output sold at which total revenues equal total costs and the operating income is zero. This is a critical point for businesses to understand because it shows the level of production (or sales) needed to cover all costs, and anything beyond that point represents profit. Choice A, C, D, and E all relate to contribution margin, which is important for calculating the breakeven point, but it is not the term used to identify the breakeven point itself.

The Term That Is Used to Identify the Quantity of Output