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:

Earmarks

Provisions added to legislation that allocate specific funds for particular projects, usually at the behest of a legislator to benefit their own constituents or interests.

Term Limits

Restrictions on the number of terms or the length of time a person can hold a particular elected office.

Interest Groups

Organizations that seek to influence public policy in favor of their specific interests without seeking political office.

House Rules Committee

A powerful committee in the U.S. House of Representatives responsible for determining under what rule other bills will come to the floor.