Respuesta :
The break-even point is the sales level at which a company operating income is zero.
What is operating income?
Operating income is a company's adjusted revenue after deducting all operating expenses and depreciation. The charges incurred in order to keep the firm functioning are referred to as operating expenses.
Operating income is computed by deducting operating expenses from gross revenue. Operating income analysis is beneficial because it excludes one-time items such as taxes, which can skew a company's earnings in a particular year.
Assume a corporation has a $1 million gross profit and $250,000 in operating expenses. The operational income for the corporation would be $1 million minus $250,000, or $750,000.
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