Which of the Following Statements About the Break-Even Point Is

question 41

Multiple Choice

Which of the following statements about the break-even point is true?

• A) It is used to determine how many more units need to be sold to increase market share by a specific amount.
• B) It is a technique used to calculate fixed costs.
• C) It determines the amount of retained earnings a company will have during an accounting period.
• D) It is a technique marketers use to examine the relationship between supply and demand.
• E) It is calculated using contribution per unit costs and total fixed costs.

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Definitions:

Electronic Deposit

The transfer of funds directly into a bank account, eliminating the need for physical checks.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by a bank.

Principal

A primary party to a transaction, such as the chief participant in a business or the main amount of a loan.

Foreign Currency

Currency used in a country other than the one in which it is being considered, which usually requires exchange for use.