Combe Corporation Has Two Divisions: Alpha and Beta

question 203

Multiple Choice

Combe Corporation has two divisions: Alpha and Beta. Data from the most recent month appear below: The company's common fixed expenses total $80,800. The break-even in sales dollars for Alpha Division is closest to:

• A) $491,129
• B) $143,478
• C) $187,536
• D) $260,580

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Definitions:

Workers

Individuals engaged in a professional or labor activity to earn wages or salaries.

Average Total Costs

The total cost of production divided by the number of units produced, representing the average cost per unit.

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.

Short Run

A period in economics during which at least one input is fixed while others are variable.