Clean Company Sells Its Product for $80

question 140

Multiple Choice

Clean Company sells its product for $80.In addition,it has a variable cost ratio of 60 percent and total fixed costs of $8,000.What is the break-even point in sales dollars for Baker Company?

• A)$4,800
• B)$32,000
• C)$20,000
• D)$8,000

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Definitions:

Period of Stress

A timeframe during which an individual, group, or system experiences significant pressure or difficulty.

Predation

The ecological process by which one organism hunts and consumes another organism for sustenance.

Precautionary Principle

A safety principle requiring that an action or policy having the potential to cause harm to the public or to the environment should not be undertaken if the consequences are uncertain or potentially dangerous.