Patron Corporation Had Sales of $350,000, Income of $10,000, and an Asset

question 22

Multiple Choice

Patron Corporation had sales of $350,000, income of $10,000, and an asset base of $100,000. The turnover is

• A)0.035.
• B)0.35.
• C)3.00.
• D)3.50.

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Definitions:

Fixed Expenses

Costs that remain constant in total regardless of changes in the level of activity or volume of output.

Break-even Sales

The amount of revenue required to cover all fixed and variable costs associated with running a business, resulting in neither profit nor loss.

Northern Division

A geographical or organizational segment of a company responsible for operations in the northern region.

Fixed Expenses

Costs that do not change in total with the level of activity or production volume within a relevant period.