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

question 11

Multiple Choice

Which of the following will increase the EBIT break-even for sales?

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

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, usually with fixed dividends.

Common Stock

Shares of ownership in a corporation that entitle holders to vote at shareholder meetings and receive dividends.

Convertible Preferred Stock

A type of preferred stock that holders can convert into a specified number of common shares, usually at any time after a predetermined date.

Preferred Stock Conversion

The process by which holders of preferred shares can convert their stocks into a predetermined number of common shares, often under specific conditions.