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:

Sampling Distribution

Distribution probabilities of a given statistic, ascertained through random sampling.

Standard Deviation

An indicator of the extent of variability or spread within a collection of numbers, illustrating the degree to which these numbers diverge from one another in a dataset.

Normal Curve

A bell-shaped curve that represents the distribution of a set of data that is symmetrically distributed around the mean.

Binomial Random Variable

A random variable that follows a binomial distribution, representing the number of successes in a fixed number of binary experiments.