When is the profit break-even point achieved?
A) when the revenue covers variable costs and the profit objective
B) when the revenue covers fixed costs and the profit objective
C) when the contribution margin covers fixed costs and the profit objective
D) when the contribution margin covers all costs and the profit objective
Correct Answer:
Verified
Q14: What variables are used to calculate the
Q15: What does PV ratio stand for?
A) profit-value
Q16: What does the relevant range refer to?
A)
Q17: What are relevant costs?
A) variable cost alternatives
Q18: What is the break-even point formula?
A) SP×N=FC+VC×N
B)
Q20: What does the break-even wedge help managers
Q21: What decisions are supported by break-even point
Q22: Within the framework of the break-even point
Q23: What costs remain constant at varying levels
Q24: What costs fluctuate directly with changes in
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