The point where the sales line and the total costs line intersect on the cost-volume-profit chart represents:
A) the maximum possible operating loss
B) the maximum possible operating income
C) the total fixed costs
D) the break-even point
D
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The proceeds of a discounted note are equal to the face value of the note
a. True b. False Indicate whether the statement is true or false
A cost variance is unfavorable if actual cost exceeds standard cost.
Answer the following statement true (T) or false (F)
Consider the following statements about taxes and after-tax cash flows:I. Capital budgeting analyses should incorporate after-tax cash flows rather than before-tax cash flows. II. Added company revenues will result in lower taxes for a firm. III. Operating expenses may actually provide a tax benefit for an organization. Which of the above statements is (are) correct?
A. III only. B. I only. C. II only. D. I and III. E. I and II.
A public company has a book value of $128 million. They have 20 million shares outstanding, with a market price of $4 per share. Which of the following statements is true regarding this company?
A) Investors may consider this firm to be a growth company. B) Investors believe the company's assets are not likely to be profitable since its market value is worth less than its book value. C) The firm's market value is more than its book value. D) The value of the firm's assets is greater than their liquidation value.