What Is the Effect on Break-Even Level of Revenues for Each

question 77

Multiple Choice

What is the effect on break-even level of revenues for each dollar of increase in fixed costs plus depreciation for a firm with 70% variable costs?

• A) An increase of $0.30
• B) An increase of $1.00
• C) An increase of $1.43
• D) An increase of $3.33

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Definitions:

Corporate Charters

Official documents issued by a government, granting rights and privileges to a corporation to conduct business.

Market Economy

A market economy is an economic system where decisions regarding investment, production, and distribution are based on the interplay of supply and demand, and prices of goods and services are determined in a free price system.

Capital

In economics, refers to wealth in the form of money or assets owned by an individual or organization. In the context of cities, it refers to the seat of government for a region or country.