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If fixed expenses increase by $ 1 0 , 0 0 0 per year, then the sales needed to break even will generally increase by
If fixed expenses increase by $ per year, then the sales needed to break even will
generally increase by more than $
true
false
A decrease in the number of units sold will decrease the breakeven point.
true
false
The breakeven point in units can be obtained by dividing total fixed expenses by the unit
contribution margin.
true
false
The breakeven point can be determined by simply adding together all of the expenses from
the income statement.
true
false
An increase in the number of units sold will decrease a company's breakeven point.
true
false
For a capital intensive, automated company the breakeven point will tend to be higher and
the margin of safety will be lower than for a less capital intensive company with the same
sales.
true
false
The total volume in sales dollars that would be required to attain a given target profit is
determined by dividing the target profit by the contribution margin ratio.
true
false
Two companies with the same margin of safety in dollars will also have the same total
contribution margin.
true
false
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