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You would like to know the minimum level of sales that is needed for a project to be accepted based on its net present value.
To determine that sales level you should compute the:

A. cash break-even point.
B. accounting break-even point.
C. financial break-even point.
D. degree of operating leverage at the current sales level.
E. contribution margin per unit and set that margin equal to the fixed costs per unit.

Respuesta :

Answer:

C. financial break-even point.

Explanation:

Break even point in economics is the point in the business, wherein cost and revenue generated are equal and business make no profit, no loss. Similary Financial break even has a same concept, however, it is a point in business, wherein earning before EBIT is equal to the fixed financial cost of the company and these fixed costs should be earned by the company to run its business and meet its fixed financial obligation. The earning above the financial break-even point is a profit to the shareholder.

Point in financial break even, wherein earning per share is equal to zero.

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