In breakeven analysis, solving for when EBITDA is equal to zero gives breakeven in terms of:
A)economic revenues
B)variable costs
C)survival revenues
D)fixed costs

Question

Quizplus · Accepted Answer

Breakeven analysis involves determining the point at which revenues cover all operational costs, both fixed and variable, without generating profit or loss. When EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is equal to zero, it indicates that the company has just enough revenue to cover its operational costs, thus achieving "survival revenues" or the breakeven point.

In Breakeven Analysis, Solving for When EBITDA Is Equal to Zero