A firm's operating breakeven point is sensitive to all of the following variables EXCEPT
A) fixed operating costs.
B) sales price per unit.
C) interest expense.
D) variable operating cost per unit.

Question

Quizplus · Accepted Answer

The operating breakeven point is the level of sales where the company's total revenue equals its total costs or where it starts earning a profit. This point is influenced by factors such as fixed operating costs, sales price per unit, and variable operating costs per unit. However, interest expense is not considered as part of the operating costs, and hence it is not a variable that affects the operating breakeven point.

A Firm's Operating Breakeven Point Is Sensitive to All of the Following