Which One of the Following Statements About Break-Even Analysis for Evaluating

question 18

Multiple Choice

Which one of the following statements about break-even analysis for evaluating products or services is true?

• A)The break-even quantity will tend to increase as the variable cost per unit of production decreases.
• B)As sales increase beyond the break-even quantity,total before-tax profits tend to decrease.
• C)A restaurant's opening of downsized facilities with only drive-through service is an example of lowering fixed costs and the break-even quantity.
• D)Increasing the unit selling price has the effect of increasing the break-even quantity.

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Definitions:

Cystic Duct

The duct from the gallbladder that merges with the hepatic duct to form the common bile duct.

Duodenum

The first section of the small intestine.

Digestive System

The organs and glands in the body responsible for the process of digestion, which includes ingestion, breakdown, absorption, and elimination of food.

Digestive System

is a group of organs working together to convert food into energy and basic nutrients to feed the entire body.