A. $3,000
B. $2,000
C. $1,000
D. zero
✅ The correct answer is option D.
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.
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.