The Intersection of the Sales Revenue Line and the Variable

question 193

Multiple Choice

The intersection of the sales revenue line and the variable expense line on a CVP graph is known as

• A)the margin of safety point.
• B)the unit contribution margin.
• C)the breakeven point.
• D)none of the above.

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Definitions:

Invested

The deployment of funds with the intention of acquiring income or profit.

Regular-interest

Regular interest refers to the consistent periodic return earned on an investment or paid on a loan as determined by the interest rate.

Compounded Semi-annually

The process where interest is calculated and added to the principal sum every six months.

Compounded Quarterly

The calculation of interest on the initial principal and the accumulated interest over previous periods on a quarterly basis.