Which of the Following Would Not Cause the Break-Even Point

question 29

Multiple Choice

Which of the following would not cause the break-even point to change?

• A) Sales price increases.
• B) Fixed cost decreases.
• C) Sales volume decreases.
• D) Variable costs per unit increases.

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Definitions:

Retained Earnings

Accumulated net income left over for a company after it has paid out dividends to its shareholders.

Prior Period Adjustment

Adjustments made to the financial statements of a prior period to correct an error or to account for a retroactive application of new accounting policies.

Retained Earnings

The share of a company's earnings that are held back and not distributed as dividends to its shareholders.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the company's financial performance.