The Equation Method and the Contribution Margin Method

question 85

Multiple Choice

The equation method and the contribution margin method:

• A)Can determine the breakeven point in units sold but not in sales dollars.
• B)Can determine the breakeven point in sales dollars but not in units sold.
• C)Cannot determine the breakeven point in units sold.
• D)Cannot determine the breakeven point in sales dollars.
• E)Can determine the breakeven point in units sold or sales dollars.

---

Definitions:

Oceanic Divergent Boundary

A tectonic plate boundary where two oceanic plates move apart, leading to the formation of new oceanic crust through volcanic activity.

Ocean-continent Convergent

A type of tectonic plate boundary where oceanic and continental plates converge, typically resulting in subduction of the oceanic plate and formation of mountain ranges and volcanic activity on the continental plate.

Transform Boundary

A type of fault where tectonic plates slide past one another horizontally, leading to earthquakes but not substantial vertical movement.

Mid-ocean Ridge

An underwater mountain range, formed by plate tectonics, that encircles the globe, marked by volcanic activity and seafloor spreading.