The Formula for Break-Even Point in Terms of Sales Dollars

question 39

Multiple Choice

The formula for break-even point in terms of sales dollars is:

• A)Total variable costs/Contribution margin ratio
• B)Total fixed costs/Contribution margin ratio
• C)Total fixed costs/Unit contribution margin
• D)Total variable costs/Total fixed costs

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Definitions:

Promissory Note

A financial document in which one party promises to pay another party a specific sum of money on a specified date or on demand.

Code Requirements

The standards and regulations set forth in legal codes that must be adhered to in specific contexts, such as building or manufacturing.

Holder in Due Course

Refers to a party who has acquired a negotiable instrument in good faith and for value, thereby having certain protections against defenses and claims that could be asserted by prior parties.

Outstanding Debt

The total amount of borrowed money that is still owed to lenders and has not yet been repaid.