A Firm's Break-Even Point Will Rise If

question 16

Multiple Choice

A firm's break-even point will rise if

• A) fixed costs decrease.
• B) contribution margin increases.
• C) sales price per unit rises.
• D) variable cost per unit rises.

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Definitions:

Economic Exposure

A company’s exposure to unexpected change in foreign exchange rates.

Forward Exchange Rate

A financial term describing an agreed exchange rate for the future exchange of two currencies, used primarily for hedging against foreign exchange risk.

Government Policy

The strategic plans and decisions made by government leaders and agencies that determine the direction of national, state, or local governance.

Currency Valuations

The process of determining the worth of one currency in terms of another currency.