When Fixed Costs Are Divided by the Contribution Margin Ratio

question 11

True/False

When fixed costs are divided by the contribution margin ratio the result will provide management with the break-even point in sales dollars.

---

Definitions:

After-tax Yield

The return on an investment after the effects of income taxes are taken into account, reflecting the actual gain to the investor.

Corporate Bond

A debt security issued by a corporation to raise funding, which promises to pay back with interest.

Annuities

Financial products that provide a stream of payments over time to the holder, often used for retirement purposes.

Retirement Years

The period of life after one ceases working full time based on achieving a certain age or financial status.