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Operating breakeven analysis deals with: the revenues and expenses associated wi

ID: 2790119 • Letter: O

Question

Operating breakeven analysis deals with:

the revenues and expenses associated with a firm's normal production and selling operations.

the assets and liabilities recorded in the pro forma balance sheet.

the interest payments to bondholders and the dividend payments to preferred stockholders.

the noncash items included in operating activities.

the net cash flows from operating activities recorded in the statement of cash flows.

a.

the revenues and expenses associated with a firm's normal production and selling operations.

b.

the assets and liabilities recorded in the pro forma balance sheet.

c.

the interest payments to bondholders and the dividend payments to preferred stockholders.

d.

the noncash items included in operating activities.

e.

the net cash flows from operating activities recorded in the statement of cash flows.

Explanation / Answer

a.The revenues and expenses associated with a firm's normal production and selling operations.

(operating break even point is the point at which operating revenues and operating expenses are equal, in other words it is the place at which there is neither a loss nor a profit).