Which of the Following Will Increase Your Need for Life

question 51

Multiple Choice

Which of the following will increase your need for life insurance?

• A) Your spouse graduates from college
• B) You receive a large inheritance
• C) Your only child graduates from college
• D) You get married

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Definitions:

Break-even

The point at which total cost and total revenue are equal, resulting in no net loss or gain.

Variable Costs

Expenses that change in proportion to the level of production or business activity.

Fixed Costs

Fixed costs are business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Contribution Margin

The sales price minus the variable costs of a product, indicating how much selling one more unit adds to profit.