Which of the following statements are correct concerning the accounting break-even point?
I. The net income is equal to zero at the accounting break-even point.
II. The net present value is equal to zero at the accounting break-even point.
III. The quantity sold at the accounting break-even point is equal to the total fixed costs plus depreciation divided by the contribution margin.
IV. The quantity sold at the accounting break-even point is equal to the total fixed costs divided by the contribution margin.
A) I and III only
B) I and IV only
C) II and III only
D) II and IV only
E) I, II, and IV only

Question

Quizplus · Accepted Answer

The accounting break-even point is where net income is zero, and the quantity sold is calculated by dividing total fixed costs plus depreciation by the contribution margin.

Which of the Following Statements Are Correct Concerning the Accounting