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The volume of production is the only factor that influences fixed costs.
The volume of production is the only factor that influences fixed costs.
False
The break-even point can be calculated using the formula BEP = TFC / (P + V).
The break-even point can be calculated using the formula BEP = TFC / (P + V).
False
The unit contribution margin represents the total profit per unit sold.
The unit contribution margin represents the total profit per unit sold.
False
The breakeven point is the point where total revenue is less than total cost.
The breakeven point is the point where total revenue is less than total cost.
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Break-even analysis is a type of demand-side analysis that considers market demand and sales projections.
Break-even analysis is a type of demand-side analysis that considers market demand and sales projections.
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If the variable cost per unit is $10 and the expected unit sales is 1000, then the total variable cost is $10,000.
If the variable cost per unit is $10 and the expected unit sales is 1000, then the total variable cost is $10,000.
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The break-even point calculation assumes that the selling price per unit increases with an increase in output.
The break-even point calculation assumes that the selling price per unit increases with an increase in output.
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A company incurs a fixed cost of $5,000 and a variable cost of $20 per unit, and the unit selling price is $100, then the unit contribution margin is $80.
A company incurs a fixed cost of $5,000 and a variable cost of $20 per unit, and the unit selling price is $100, then the unit contribution margin is $80.
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The margin of safety is the difference between the breakeven point and the actual sales level.
The margin of safety is the difference between the breakeven point and the actual sales level.
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If the total revenue is $10,000 and the total cost is $8,000, then the profit is $2,000.
If the total revenue is $10,000 and the total cost is $8,000, then the profit is $2,000.
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