The Break-Even Point in Unit Sales Increases When Variable Expenses

question 120

Multiple Choice

The break-even point in unit sales increases when variable expenses do which of the following?

• A) Increase, and the selling price remains unchanged.
• B) Decrease, and the selling price, remains unchanged.
• C) Decrease, and the selling price increases.
• D) Remain unchanged, and the selling price increases.

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Definitions:

Transferability of Ownership

The capability to legally transfer the title or ownership of an asset or property from one entity to another.

Sole Proprietorship

A business structure in which a single individual owns and operates the business, bearing sole responsibility for its debts and obligations.

Corporation

A legal entity owned by stockholders whose liability is limited to the value of their stock ownership.

Partnership

A firm with multiple owners who share the profits and bear unlimited liability for the firm’s losses and debts.