Question

Assuming that a has depreciation and they are operating at Cash Break Even, it would be operating on the Income Statement at an Operating.

(a).Break-Even
(b).Profit
(c).Margin
(d).Loss

Answer 1

When a company is operating at a loss, it should aim to lose the least amount of money by continuing to produce.

Step-by-step explanation:

When a company is operating below the break-even point, where price equals average cost, it is operating at a loss. In this situation, the company has two options: continue to produce and lose money or shutdown. The preferable option is to continue producing and minimize the losses as much as possible. The company should aim to lose the least amount of money in order to mitigate the financial impact.