The Level of Sales at Which Revenues Equal Expenses and Net

question 103

Multiple Choice

The level of sales at which revenues equal expenses and net income is zero is called the ________.

• A)margin of safety
• B)contribution margin
• C)break-even point
• D)point of no return

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Definitions:

State Excise Tax

Taxes imposed by a state on particular goods or activities, such as alcohol, cigarettes, and gasoline.

Federal Excise Tax

A tax imposed by the federal government on the sale of certain goods and services, such as gasoline, alcohol, and tobacco.

Efficiency Loss

The loss of economic efficiency that can occur when the balance between supply and demand is not achieved or when market conditions lead to a misallocation of resources.

Marginal Benefit

The additional satisfaction or utility gained by consuming or producing one more unit of a good or service.