Sales volumes lower than the break-even point result in a firm having ___________________.
A) operating losses
B) operating profits
C) break even cash flows
D) a gain of potential leverage and bank financing

Question

Quizplus · Accepted Answer

Sales volumes lower than the break-even point means that the firm is not generating enough revenue to cover its fixed and variable costs, resulting in operating losses.

Sales Volumes Lower Than the Break-Even Point Result in a Firm