The fiNancial Break-Even Point Is Defined as the Point Where

question 311

Multiple Choice

The financial break-even point is defined as the point where the quantity is equal to:

• A) (Fixed costs + depreciation)/(price per unit - variable cost per unit).
• B) (Fixed costs + depreciation + the operating cash flow that produces a zero net present value)/(price per unit - variable cost per unit).
• C) (Price per unit - variable cost per unit)/(fixed costs + depreciation).
• D) (Price per unit - variable cost per unit)/(fixed costs + the operating cash flow that produces a zero net present value).
• E) (Fixed costs + the operating cash flow that produces a zero net present value)/(price per unit - variable cost per unit).

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Definitions:

Variable Ratio

A reinforcement schedule in operant conditioning where a response is reinforced after an unpredictable number of responses.

Fixed Interval

A type of reinforcement schedule in operant conditioning where rewards are provided after a specific, constant amount of time has passed.

Fixed Ratio

Fixed ratio denotes a schedule of reinforcement where a response is reinforced only after a specified number of responses have occurred.

Variable-interval Schedule

A schedule of reinforcement where a response is rewarded after an unpredictable amount of time has passed, contributing to a steady, stable rate of response.