The break-even point cannot be determined by
A) computing it from a mathematical equation.
B) computing it using contribution margin.
C) reading the prior year's financial statements.
D) deriving it from a CVP graph.

Question

The break-even point cannot be determined by
A) computing it from a mathematical equation. 
B) computing it using contribution margin. 
C) reading the prior year's financial statements. 
D) deriving it from a CVP graph.

Quizplus · Accepted Answer

The break-even point is determined by analyzing costs, revenue, and volume data, which cannot be obtained from reading prior year's financial statements.

The Break-Even Point Cannot Be Determined by