The financial break-even point is defined as the point where the quantity is equal to:
A) (Fixed costs + depreciation) /(price per unit - variable cost per unit) .
B) (Fixed costs + depreciation + the operating cash flow that produces a zero net present value) /(price per unit - variable cost per unit) .
C) (Price per unit - variable cost per unit) /(fixed costs + depreciation) .
D) (Price per unit - variable cost per unit) /(fixed costs + the operating cash flow that produces a zero net present value) .
E) (Fixed costs + the operating cash flow that produces a zero net present value) /(price per unit - variable cost per unit) .
Correct Answer:
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