Refer to the Above Graph

question 85

Multiple Choice

Refer to the above graph.If a curve shifted from (d) to (b) ,then the Gini ratio would:

• A) increase.
• B) decrease.
• C) remain constant.
• D) become negative.

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Definitions:

Margin of Safety

The difference between actual or projected sales and the break-even point, indicating the cushion a business has before it incurs a loss.

Variable Expenses

Expenditures that change in direct correlation with production levels or the quantity of sales, including costs like raw materials and direct labor.

Fixed Expenses

Costs that do not change regardless of the level of production or business activity.

Break-even Sales

The amount of revenue required to cover total fixed and variable costs, resulting in zero profit or loss.