Which of the Following Is the Amount by Which Sales

question 69

Multiple Choice

Which of the following is the amount by which sales could drop before profits reach the breakeven point?

• A) Operating leverage
• B) Total contribution margin
• C) Margin of safety
• D) Incremental sales

---

Definitions:

Partial Ownership

Holding a fraction of the total equity or interest in an asset or a company, as opposed to full ownership.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments.

State And Local Governments

The subdivisions of the federal government with their own specific powers and responsibilities, managing local affairs and providing public services.

Higher Interest Rate

An increased cost of borrowing money reflected in the percentage charged on the principal amount by lenders to borrowers.