You Would Like to Know the Minimum Level of Sales

question 71

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) degree of operating leverage at the current sales level.
• C) accounting break-even point.
• D) cash break-even point.
• E) financial break-even point.

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Definitions:

Corporate

Relating to a large company or group, often characterized by a complex structure and management processes.

Institutional Advertising

Advertising aimed at creating a positive image of an organization or company as a whole, rather than promoting individual products or services.

Goodwill

The intangible asset represented by a business's value that exceeds its tangible assets, often arising from brand reputation, customer relations, or patents.

Concepts

Fundamental ideas or general notions that form the foundation of thinking, understanding, or creating in various domains.