The Break-Even Point in Unit Sales Increases When Variable Expenses

question 68

Multiple Choice

The break-even point in unit sales increases when variable expenses:

• A)increase and the selling price remains unchanged.
• B)decrease and the selling price remains unchanged.
• C)decrease and the selling price increases.
• D)remain unchanged and the selling price increases.

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Definitions:

Drawing

A withdrawal made by an owner from the business for personal use.

Revenues

Income generated from normal business operations and includes discounts and deductions for returned merchandise.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership stake of the owners.

Revenues

The total income generated from normal business operations and other activities over a specific time period.