Which one of the following statements is correct?

Multiple Choice

Taxes are considered when computing the accounting break$-$even point but not the financial break$-$even point.

The contribution margin is equal to sales minus fixed costs.

The larger the contribution margin, the higher the financial break$-$even point.

At the accounting break$-$even level, the pretax profit is equal to the aftertax profit.

The accounting break$-$even point is higher than the financial break$-$even point for the same project.