All Else Being Equal,which of the Following Will Lower the Breakeven

question 118

Multiple Choice

All else being equal,which of the following will lower the breakeven point of a firm?

• A) higher fixed costs
• B) lower selling price
• C) lower variable costs
• D) none of the above

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Definitions:

Stock Dividends

Dividends paid to shareholders in the form of additional shares of stock instead of cash.

Contributed Capital

The total value of the cash and other assets received by a company from its shareholders in exchange for stock, also known as paid-in capital.

Preferred Stock

A class of ownership in a corporation with a higher claim on assets and earnings than common stock, often paying fixed dividends.

Callable Preferred Stock

A type of preferred stock that gives the issuer the right to redeem the stock at a predetermined price after a certain date.