Operating breakeven analysis determines:
A) the minimum value of assets that a firm should hold to achieve profitability.
B) the maximum amount of the total assets to be financed by debt.
C) the minimum earnings to be retained and the earnings to be paid as dividends.
D) the level of capacity utilization required to achieve the forecasted sales level.
E) the level of sales of a new product required to achieve profitability.

Question

Quizplus · Accepted Answer

Operating breakeven analysis determines the level of sales needed for a firm to cover its operating costs, thus achieving profitability.

Operating Breakeven Analysis Determines