The break-even point cannot be determined by

A) computing it from a mathematical equation.
B) computing it using contribution margin.
C) reading the prior year's financial statements.
D) deriving it from a CVP graph.

Question

Mónica Vorhis · Accepted Answer

Final Answer : C, Explanation :  The break-even point is determined by analyzing the costs and revenue of a business. It cannot be determined by reading the prior year's financial statements, which only show the past performance of the company and not its current or future financial situation. The break-even point can be determined through mathematical equations, contribution margin, or CVP (cost-volume-profit) graphs.

The break-even point cannot be determined by

A) computing it from a mathematical equation.
B) computing it using contribution margin.
C) reading the prior year's financial statements.
D) deriving it from a CVP graph.

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Related questions

The break-even point cannot be determined byA) computing it from a mathematical equation.B) computing it using contribution margin.C) reading the prior year's financial statements.D) deriving it from a CVP graph.

Definitions

Learning Objectives

Learning Objectives

Related questions

The break-even point cannot be determined by

A) computing it from a mathematical equation.
B) computing it using contribution margin.
C) reading the prior year's financial statements.
D) deriving it from a CVP graph.