Slim Owns Cattle, a Pick-Up Truck, and Stock in Range

question 49

Multiple Choice

Slim owns cattle, a pick-up truck, and stock in Range Corporation, which owns and operates the Big R Ranch. Capable of being involved in a bailment is

• A)the cattle, the truck, and the stock.
• B)the Big R Ranch.
• C)Slim.
• D)all of the choices.

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Definitions:

Income

The amount of revenue that remains after deducting the costs, expenses, and taxes related to earning that revenue.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and one is "breaking even."

Contribution Margin

The amount remaining from sales revenue after all variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Costs

Costs that change in proportion to the level of production or sales activity within a business.