Financial breakeven analysis determines the operating income at which the _____ is equal to zero.?
A. ?earnings before interest and tax (EBIT)
B. ?degree of operating leverage
C. ?earnings per share
D. ?degree of financial leverage (DFL)
E. ?gross profit
Answer: C
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a. income statement b. separate statement of comprehensive income c. statement of cash flows d. retained earnings statement
Total costs that change in direct proportion to changes in productive output, or any other volume measure, are called variable costs
Indicate whether the statement is true or false
Farmer Company purchased machine on January 1, Year 1, for $56,000. The machine is estimated to have a 5-year life and a salvage value of $5000. The company uses the straight-line method. At the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life?
A. $2550 B. $4080 C. $5080 D. $3175
The lesser the competition, the greater the choice available to consumers
Indicate whether the statement is true or false