Which of the Following Statements About Determining the Breakeven Point

question 126

Multiple Choice

Which of the following statements about determining the breakeven point is FALSE?

• A)Operating income is equal to zero.
• B)Contribution margin - fixed costs is equal to zero.
• C)Revenues equal fixed costs plus variable costs.
• D)Breakeven revenues equal fixed costs divided by the variable cost per unit.

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Definitions:

Subsidence

The gradual sinking or settling of an area of land, which can be caused by natural processes or human activities.

Continental Platform

A broad region that surrounds the continental shield and typically exposes horizontal to gently dipping sedimentary rocks.

Crystalline Basement

The crystalline (metamorphic and igneous) rocks that underlie sedimentary and volcanic rocks in an area; widely exposed in the continental shield.

Broad Domes

Broad domes refer to large, rounded structures on the Earth's surface, often created by the slow uplift of the underlying strata.