Which of the Following Statements Is True About Breakeven Analysis

question 72

Multiple Choice

Which of the following statements is true about breakeven analysis?

• A) The breakeven point can only be stated in terms of sales revenue.
• B) At the breakeven point, the firm's fixed costs are greater than its variable costs.
• C) At the breakeven point, the firm's fixed costs are less than its variable costs.
• D) At the breakeven point, the firm's sales price per unit equals its variable cost per unit.
• E) At the breakeven point, the firm's sales revenue equals the sum of its fixed and variable costs.

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