When managers at an organization have operating income at the breakeven point (BEP)that equal $0,they do not have to pay income taxes because there is no operating income.

Question

Quizplus · Accepted Answer

Operating income at the breakeven point (BEP) means that total revenue is equal to total expenses, resulting in zero operating income. Since there is no operating income, there is nothing to tax, and therefore managers do not have to pay income taxes.

When Managers at an Organization Have Operating Income at the Breakeven