Contribution margin represents the amount of sales left over after fixed costs are paid.
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The difference between variable cost and fixed cost is that the cost amount fluctuates differently based on how many uses are sold.
A. 对
B. 错
Break-even analysis helps a company determine what amount of quantity it needs to sell in order to reach zero profit.
A. 对
B. 错
If economic conditions were expected to be favorable, an investor would likely prefer a firm with a low degree of leverage.
A. 对
B. 错
The use of financial leverage must consider both risk and maximizing profit.
A. 对
B. 错