Posted by: Pdfprep
Post Date: March 6, 2021
Which of the following statements is true regarding cost-volume-profit analysis?
A . Contribution margin is the amount remaining from sales revenue after fixed expenses have been deducted.
B . Breakeven point is the amount of units sold to cover variable costs.
C . Breakeven occurs when the contribution margin covers fixed costs
D . Following breakeven, net operating income will increase by the excess of fixed costs less the variable costs per units sold
Answer: C
Leave a Reply