The Operating Break-Even Sales Level Is Sensitive to All of the Following

question 133

Multiple Choice

The operating break-even sales level is sensitive to all of the following variables except:

• A)fixed operating costs
• B)sales price per unit
• C)variable operating cost per unit
• D)sales commissions expense
• E)it is sensitive to all of the above variables

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Definitions:

Cheque

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.

Invoice

A document sent by a seller to a buyer, outlining the goods or services provided, their prices, and the total amount owed.

EOM

End of Month, referring to any activity, measurement, or payment scheduled to occur on the last day of a month.

Outstanding Balance

The total amount of money owed on a loan, credit card, or mortgage that is yet to be paid.