Which of the Following Would Not Affect the Break-Even Point

question 98

Multiple Choice

Which of the following would not affect the break-even point?

• A) number of units sold
• B) variable expense per unit
• C) total fixed expense
• D) selling price per unit

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Definitions:

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Income Statement

A financial statement that shows a company’s revenues and expenses over a specific period, leading to the net income or loss for the period.

Treasury Stock

An alternative term for treasury shares, referring to stocks that a company has repurchased and holds, reducing the amount of outstanding stock on the market.

Closing Entries

Made at the end of the accounting period to transfer balances in temporary (income statement) accounts to Retained Earnings and to establish a zero balance in each of the temporary accounts for beginning the next accounting period.