If a company operates at the break even point for each of its segments, it will lose money overall if common fixed expenses exist.

Name: If a company operates at the break even point for each of its segments, it will lose money overall if common fixed expenses exist.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Even if each segment is breaking even, the existence of common fixed expenses (such as rent, salaries, etc.) means that the company as a whole will still incur those expenses and may result in an overall loss.

If a Company Operates at the Break Even Point for Each