The operating breakeven point can be found by solving for the sales level that just covers total fixed and variable costs.

Name: The operating breakeven point can be found by solving for the sales level that just covers total fixed and variable costs.
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Question

Quizplus · Accepted Answer

This is correct. The operating breakeven point refers to the level of sales where the company's total costs (fixed costs plus variable costs) are equal to its total revenue. It is the point at which the company has neither profit nor loss.

The Operating Breakeven Point Can Be Found by Solving for the Sales