A Company Has Cost and Revenue Functions Given in Dollars

question 112

Multiple Choice

A company has cost and revenue functions given in dollars by and . What is the effect on the break even point of doubling the fixed costs?

• A)The break even point is cut in half.
• B)The break even point is doubled.

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Definitions:

Total Tax

The sum of all taxes levied on an individual or a corporation by various governmental agencies.

Provincial Tax Brackets

These refer to the range of income segments taxed at different rates by provincial governments in countries like Canada, where taxation powers are shared between federal and provincial authorities.

Net Working Capital

The difference between a company’s current assets and its current liabilities, indicating the liquidity of the business.

Current Assets

Assets that a company expects to convert into cash within one year or one business cycle, whichever is longer.