Accounting break-even analysis solves for the level of sales that will result in
A) IRR=Cost of Capital.
B) net income = $0.00.
C) Free cash flow = $0.00.
D) NPV = $0.00.

Question

Quizplus · Accepted Answer

Accounting break-even analysis is used to determine the level of sales required to cover all costs and expenses, resulting in zero net income. Therefore, the correct choice is B, net income = $0.00.

Accounting Break-Even Analysis Solves for the Level of Sales That