You Would Like to Know the Minimum Level of Sales

question 8

Multiple Choice

You would like to know the minimum level of sales that is needed for a project to be accepted based on its net present value.To determine that sales level you should compute the:

• A)contribution margin per unit and set that margin equal to the fixed costs per unit.
• B)contribution margin per unit.
• C)accounting break-even point.
• D)cash break-even point.
• E)financial break-even point.

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Definitions:

Industry

The organized action of making goods and services available for consumer use through the production, manufacturing, or construction processes.

Payoff Matrix

A table that shows the potential outcomes of different strategies in a game or decision-making situation.

Compete

The act of entities striving against each other to attain a goal, such as a higher market share or win.

Cooperate

The act of working together towards a common goal or benefit.