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

question 101

Multiple Choice

Which of the following will cause the EBIT Break-Even for sales to increase?

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

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Definitions:

P > MC

A condition suggesting that the price of a product is greater than its marginal cost, which is often used to indicate potential profitability in a competitive market.

Payoff Matrix

A table that shows the potential outcomes of a strategic decision made by two or more players, highlighting the benefits or losses based on each player's decisions.

Dominant Strategy

A strategy in game theory that is best for a player, regardless of the strategies chosen by other players.

Price High

Typically refers to a situation where the price of a good or service is higher than usual, which can result from high demand, low supply, or other market conditions.