The amount by which sales can decrease before the company incurs an operating loss is called the breakeven point.

Name: The amount by which sales can decrease before the company incurs an operating loss is called the breakeven point.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The breakeven point is the level of sales at which a company neither makes a profit nor incurs a loss. The amount by which sales can decrease before the company incurs an operating loss is referred to as the margin of safety.

The Amount by Which Sales Can Decrease Before the Company