Which of the Following Conditions Would Cause the Break-Even Point

question 42

Multiple Choice

Which of the following conditions would cause the break-even point to decrease?

• A) total fixed costs increase
• B) unit selling price decreases
• C) unit variable cost decreases
• D) unit variable cost increases

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Definitions:

Cash Dividend

Funds distributed by a business to its owners, often sourced from its profits.

Treasury Stock

Shares that were issued and subsequently reacquired by the company, reducing shareholders' equity.

No-par Common Stock

Shares of common stock issued without a specified face value or par value, where the entire amount paid for the shares is considered legal capital.

Par Preferred Stock

A class of preferred shares issued at a designated face value, often affecting aspects of dividend payments and company equity structure.