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:

Average Price

The sum of prices of all goods or services divided by the number of units, used to give a general idea of price levels in a market.

Savings And Loan Debacle

Refers to a financial crisis in the United States during the 1980s and early 1990s when many savings and loan associations failed due to risky business practices.

Interest Rates

The cost of borrowing money expressed as a percentage of the amount borrowed, or the return on invested savings.

Long Term Loans

Loans that are extended for a longer duration, typically exceeding one year, and used for financing significant investments or expenses.