Which of the Following Formulae Is Correct When Using the Contribution

question 133

Multiple Choice

Which of the following formulae is correct when using the contribution margin method to determine the break-even point?

• A)Revenues less operating income equal variable costs plus fixed costs.
• B)Unit contribution margin times unit variable cost equals the break-even number of units.
• C)Unit contribution margin times the break-even number of units equals total variable costs.
• D)Selling price less unit contribution margin equals unit fixed cost for all values below or at the break-even number of units.
• E)Unit contribution margin times the break-even number of units equals fixed costs.

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Definitions:

Intrusive Thoughts

Unwanted and often distressing ideas, images, or impulses that randomly enter an individual's mind, causing discomfort or anxiety.

Obsessions

Persistent, intrusive thoughts, urges, or images that cause significant anxiety or distress.

Real Problems

Authentic or genuine issues or challenges that necessitate solutions or interventions.

Exposure and Response Prevention

A treatment for obsessive-compulsive disorder that exposes a client to anxiety-arousing thoughts or situations and then prevents the client from performing his or her compulsive acts. Also called exposure and ritual prevention.