American_Bankers_Association
CTFA · Question #66
In the context of operating leverage break-even analysis, if selling price per unit rises and all other variables remain constant, the operating break-even point in units will:
The correct answer is A. Fall. See the full explanation below for the reasoning.
Investment Management
Question
In the context of operating leverage break-even analysis, if selling price per unit rises and all other variables remain constant, the operating break-even point in units will:
Options
- AFall
- BRise
- CStay the same
- DStill be indeterminate until interest and preferred dividends paid are known
How the community answered
(43 responses)- A81% (35)
- B12% (5)
- C2% (1)
- D5% (2)
Topics
#operating leverage#break-even analysis#selling price#unit economics
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