Quail,Inc,has a Contribution Margin of 40% and Fixed Costs of $130,000.What

question 41

Multiple Choice

Quail,Inc,has a contribution margin of 40% and fixed costs of $130,000.What is the break-even point?

• A)$52,000
• B)$325,000
• C)$225,000
• D)$78,000

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Definitions:

Total Income

The sum of all revenue and gains a company acquires before any expenses are subtracted.

Residual Value

Residual value is the estimated amount that an asset will be worth at the end of its useful life.

Capital Expenditure

Funds used by a company to acquire, upgrade, and maintain physical assets such as property, industrial buildings, or equipment to improve its long-term operations.

Net Present Value

A calculation that compares the present value of cash inflows to the present value of cash outflows over a period of time for investment analysis.