You Are President of a Manufacturing Unit of Small Electronic

question 32

Multiple Choice

You are president of a manufacturing unit of small electronic appliances.You want to reduce your break-even quantity.Other things equal,you can do this by:

• A)increasing the quantity sold, while keeping price unchanged.
• B)reducing marginal revenue.
• C)reducing unit variable cost.
• D)increasing fixed cost.

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, affecting the company's equity and long-term debt.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures, essential for maintaining or expanding assets.

Operating Activities

Transactions and events that relate to the principal revenue-generating activities of the company.

Financing Activity

Transactions that result in changes to the size and composition of the equity capital or borrowings of a company, as reported in the cash flow statement.