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Which One of the Following Statements Is Correct

Question 37

Multiple Choice

Which one of the following statements is correct?


A) At the accounting break-even level,the pretax profit is equal to the aftertax profit.
B) The contribution margin is equal to sales minus fixed costs.
C) Taxes are considered when computing the accounting break-even point but not the financial break-even point.
D) The larger the contribution margin,the higher the financial break-even point.
E) The accounting break-even point is higher than the financial break-even point for the same project.

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