At the operating breakeven point, ________ equals zero.
A) sales revenue
B) fixed operating costs
C) variable operating costs
D) earnings before interest and taxes

Question

Quizplus · Accepted Answer

At the operating breakeven point, earnings before interest and taxes (EBIT) equals zero. This is because the company's total revenue exactly covers its total operating costs (both fixed and variable), leaving no profit or loss.

At the Operating Breakeven Point, ________ Equals Zero