A Break-Even Chart Is a Graphic Presentation

question 91

Multiple Choice

A break-even chart is a graphic presentation

• A) that shows the maximum number of units that will be sold at a certain price.
• B) of a break-even analysis that shows when total revenue and total cost intersect to identify profit or loss for a given quantity sold.
• C) that relates variable costs in terms of product or service substitutes in order to determine which items or services would least affect total revenues.
• D) that relates profits and revenues versus total costs in order to determine the time frame in which a company could achieve profitability.
• E) of a form of scatter graph used to identify specific activities or items that are creating the greatest return on investment.

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Definitions:

Reacquisition

The process of a company buying back its own shares or bonds from investors.

Refunding

The process of replacing an old debt with a new one, usually with better terms, such as a lower interest rate.

Old Issue

A topic or problem that has been present or discussed for a long time.

New Bond Issue

The process of offering new bonds to investors for the first time to raise capital for the issuer.