Which of the Following Statements About Determining the Break-Even Point

question 182

Multiple Choice

Which of the following statements about determining the break-even point is FALSE?

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

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Definitions:

Conduction Deafness

A type of hearing loss that occurs when there is a problem conducting sound waves anywhere along the route through the outer ear, tympanic membrane (eardrum), or middle ear.

Temporal Lobe

A region of the brain involved in processing auditory information and is also important for memory and emotion.

Tympanic Membrane

Also known as the eardrum, it is a thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Color Blindness

A genetic condition where a person's ability to distinguish colors is impaired due to the absence or malfunction of certain color-detecting molecules in the eye.