The accounting operating profit (EBIT) break-even point tells us how many units must be sold to avoid an accounting operating loss.

Question

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The accounting operating profit (EBIT) break-even point represents the level of sales at which the company's accounting operating income equals its accounting operating expenses, meaning that it is neither making a profit nor a loss. Therefore, it tells us how many units must be sold to avoid an accounting operating loss.

The Accounting Operating Profit (EBIT) Break-Even Point Tells Us How