06. Using CVP analysis, the breakeven point is defined as

Select one:

A. where the unit contribution margin equals the selling price less the unit variable cost.

B. the point where output units equal input units.

C. the point where unit contribution margin equals fixed costs divided by number of breakeven units.

D. where revenues less variable costs equal operating income.

07. Which of the following statements about using the equation method to determine the breakeven point is FALSE?

Select one:

A. Revenues plus fixed costs less variable costs equals operating income.

18. The financial budget is that part of the master budget that comprises

Select one:

A. the capital budget and the budgeted balance sheet.

B. the cash budget, the budgeted statement of cash flows, and the retained earnings budget.

C. the capital budget, the cash budget, and the budgeted statement of cash flows.

D. the capital budget and the cash budget.

B. Operating income is equal to zero.

C. Operating income is determined by adding variable costs to fixed costs and subtracting that total from revenues.

D. It is an easy method to use with multiple products.