At break-even point, an operating income must equal to

A. $3,000

B. $2,000

C. $1,000

D. zero

Answer: Option D

Solution(By Examveda Team)

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.