When You Can Sell an Asset for More Than You

question 170

Multiple Choice

When you can sell an asset for more than you paid for it, you have earned a

• A) capital gain.
• B) dividend.
• C) retained earning.
• D) perpetuity asset.

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Definitions:

Break-even Sales

The amount of revenue needed to cover both the fixed and variable costs, resulting in neither profit nor loss.

Unit Selling Price

The amount of money charged to a customer for a single unit of a product or service.

Unit Variable Costs

Costs that vary directly with the production volume, such as materials and labor, on a per-unit basis.

Contribution Margin Ratio

A financial metric that shows how much of a company's revenue is available after variable costs to cover fixed costs and generate profit.