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Which of the following statements is incorrect? We can define the break-even point as the level of sales, either units or dollars, that causes profits,
Which of the following statements is incorrect?
We can define the break-even point as the level of sales, either units or dollars, that causes profits, however measured, to equal zero.
We can measure operating leverage by comparing the percentage change in EBIT to a given percentage change in sales.
All the answers are correct except one.
Total variable cost per unit will always decline as the number of units increases.
The use of higher debt financing concentrates the firms business risk onto fewer shareholders, making the stock riskier
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