Which of the Following Is TRUE When Using the Income

question 166

Multiple Choice

Which of the following is TRUE when using the income statement approach to finding breakeven?

• A)Sales revenue - variable expenses - fixed expenses = operating income
• B)(Variable expenses x number of units)- fixed expenses = operating income
• C)Fixed expenses + variable expenses + sales revenue = operating income
• D)Fixed expenses + variable expenses - sales revenue = operating income

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Definitions:

New Price

Refers to the updated or current price of a product or service that may differ from previous pricing.

Legally Sufficient

A term that implies a claim, defense, or other legal assertion meets the minimum legal requirements to proceed in a court of law.

Fair Market Value

The price that property would sell for on the open market between a willing buyer and a willing seller.

Preexisting Duty

An obligation that a party is already legally required to perform, which cannot serve as consideration for a new contract.