Which of the Following Is a Nondurable Good

question 63

Multiple Choice

Which of the following is a nondurable good?

• A) a Toyota sedan
• B) a movie ticket
• C) a six-pack of beer
• D) an hour with a masseuse

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Definitions:

Financial Break-Even

The point at which total revenues are equal to total operating and financial costs, indicating a project or business is neither losing nor making money.

Accounting Break-Even

The point at which total revenues and total expenses are equal, resulting in neither profit nor loss, specifically in an accounting context.

Cash Break-Even

It refers to the point at which a business generates just enough revenue to cover its operating expenses, indicating no profit or loss.

Degree of Operating Leverage

A financial ratio that measures the sensitivity of a company’s operating income to its sales, indicating how a change in sales volume will impact operating income.