Operating Cycle and Breakeven Point

Choose the correct answer.

1. The operating cycle measures the time between acquiring and selling inventory.
a) True
b) False

2. If a firm's sale price per unit decreases, the firm's operating breakeven point will
a) Decrease
b) Increase
c) Remain unchanged
d) Change in an undetermined direction

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...n be defined as the average time required acquiring inventory, selling it and ...