Which Condition Would Result in Invalidating an Application of Break-Even

question 26

Multiple Choice

Which condition would result in invalidating an application of break-even analysis?

• A) The variable cost to produce a unit is less than one percent of the fixed cost to run the plant.
• B) The purchasing department both offers quantity discounts to customers and receives quantity discounts from suppliers.
• C) The variable cost to produce a unit is within one percent of the sale price.
• D) The labor to manufacture the item is free.

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Definitions:

Somatic Nervous System

A part of the peripheral nervous system associated with voluntary control of body movements via skeletal muscles and the reception of external stimuli.

Spinal Cord

A long, thin, tubular structure made up of nervous tissue, which extends from the brain and is encased in the vertebral column; it is a crucial part of the central nervous system.

Amygdala

A structure in the brain involved in emotion regulation, emotional memory, and responses to fear.

Medulla

Part of the brainstem involved in controlling involuntary functions such as breathing, heart rate, and blood pressure.