If the Break-Even Volume Doubles, This Suggests That

question 42

Multiple Choice

If the break-even volume doubles, this suggests that

• A)variable cost has increased.
• B)fixed cost has increased.
• C)selling price has decreased.
• D)the variable or fixed costs have increased or selling price has decreased.

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Definitions:

Investment Required

The amount of capital needed to undertake a specific project, purchase assets, or start a business.

Simple Rate

A basic or straightforward interest rate that does not take into account the effect of compounding.

Annual Incremental

Relates to the yearly increase or addition in terms of quantity, size, rate, or level of company metrics or budgets.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest.