Which of the Following Will Cause the EBIT Break-Even for Sales

question 101

Multiple Choice

Which of the following will cause the EBIT Break-Even for sales to increase?

• A) a decrease in the sales price
• B) a decrease in depreciation expense
• C) a decrease in selling, general, and administrative expenses
• D) a decrease in the number of units sold

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Definitions:

Variable

A characteristic, number, or quantity that can change or vary, taking on different values in a mathematical model, statistical experiment, or real-life situation.

Output

The quantity of goods or services produced by a firm, industry, or economy within a certain period.

AVC

Average Variable Cost, which is the variable cost per unit of output, typically analyzed in the short run.

AVC

Stands for "Average Variable Cost," which is the total variable cost divided by the number of units produced, in the context of economics.