Select the Correct Statement Regarding Break-Even Point Analysis

question 71

Multiple Choice

Select the correct statement regarding break-even point analysis.

• A) The break-even point in sales dollars equals total fixed costs divided by contribution margin per unit.
• B) An increase in fixed costs causes the break-even point to increase.
• C) An increase in contribution margin per unit causes the break-even point in units to increase.
• D) A decrease in the variable cost per unit causes the break-even point in units to increase.

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Definitions:

Communication

The evoking of a shared or common meaning in another person.

Performance Management

A process of defining, measuring, appraising, providing feedback on, and improving performance.

Appraising

The act of evaluating the performance, value, or quality of an employee, object, or situation.

Measuring

The process of determining the size, quantity, or degree of something using standard units or tools.