Q255
At break-even point, an operating income must equal to
A.
$3,000
B.
$2,000
C.
$1,000
D.
zero
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
At break-even point, an operating income must equal to zero. A company breaks even for a given period when sales revenue and costs incurred during that period are equal. Thus the break-even point is that level of operations at which a company realizes no net income or loss.