When a Company Sells More Units Than the Break-Even Point

question 24

Multiple Choice

When a company sells more units than the break-even point,

• A)it moves above the relevant range.
• B)profits are positive.
• C)there are no new variable costs incurred.
• D)profits are negative.

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Definitions:

Cash Balance

The amount of currency and liquid instruments in a company's possession that can be readily used for transactions.

Check

A written order directing the bank to pay a certain sum to a designated party.

Check Register

A record book or digital log used to track checks written, deposits made, and current account balances.

Deposit

A sum of money placed into an account or given as a part payment towards a purchase, often to secure it or show commitment.