Which of the following mathematical equations represents the operating breakeven point, QOpBEP, for a firm?
A)Sales = Gross profit margin
B)Sales = Total variable costs + Total fixed costs
C)Total operating costs = Total variable costs + Total contribution margin costs
D)Total operating costs = Contribution margin
E)Contribution margin = Earnings before interest and tax

Question

Quizplus · Accepted Answer

The operating breakeven point is the level of sales at which a firm's total revenue equals its total costs, including fixed and variable costs. This is represented by the equation Sales = Total variable costs + Total fixed costs.

Which of the Following Mathematical Equations Represents the Operating Breakeven