In 2016, Hagar Corp

question 103

Multiple Choice

In 2016, Hagar Corp.sold 3,000 units at $500 each.Variable expenses were $350 per unit, and fixed expenses were $780,000.The same variable expenses per unit and fixed expenses are expected for 2017.If Hagar cuts selling price by 4%, what is Hagar's break-even point in units for 2017?

• A)5,200
• B)5,416
• C)5,760
• D)6,000

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Definitions:

Total Asset

The sum of all assets owned by a company, including both current and non-current assets.

Turnover Measure

An indicator of the efficiency and effectiveness of a company in generating revenue or managing inventory, often expressed as a ratio.

Common-Size Statement

A financial statement in which each line item is expressed as a percentage of a significant total, facilitating comparison.

Comprehensive Income

The change in equity of a business enterprise during a period from transactions and other events from non-owner sources. It includes all forms of earnings and gains or losses.