Which of the Following Statements Is True of Operating Breakeven

question 3

Multiple Choice

Which of the following statements is true of operating breakeven analysis?

• A) It involves determining the level of production and sales at which net operating income is equal to one.
• B) It involves determining the point at which revenue from sales equals operating costs.
• C) It involves the analysis of the level of production and sales at which financing costs are recovered.
• D) It involves determining the operating income the firm needs to just cover all of its financing costs.
• E) It involves the analysis of the interest payments to bondholders and the dividend payments to preferred stockholders.

---

Definitions:

Microloans

Small-business loans often used to buy equipment or operate a business.

Small Business Administration

A U.S. government agency that provides support to entrepreneurs and small businesses.

Mission Statement

An official abstract outlining the goals and principles of a corporation, entity, or person.

Achievements

Significant accomplishments or milestones reached through hard work or effort, often marked by success or the attainment of an objective.