Financial break-even level of EBIT is on the ____ axis.

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Slope of EBIT-EPS line

No worries! We‘ve got your back. Try BYJU‘S free classes today!

None of the above

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is B X
The two lines intersect at point E where the level of EBIT and EPS both are same under both the financial plans. Point E is the indifference point. The value corresponding to X axis is EBIT and the value corresponding to Y axis is EPS.

Suggest Corrections