If Fixed Costs Are $500,000 and Variable Costs Are 60

question 181

True/False

If fixed costs are $500,000 and variable costs are 60% of break-even sales, profit is zero when sales revenue is $930,000.

---

Definitions:

Chief Executive Officer

The highest-ranking executive in a company, responsible for making major corporate decisions and managing overall operations.

Strategy Planning

The process of defining an organization's direction and making decisions on allocating its resources to pursue this strategy, including setting goals and determining actions.

Organization

An entity comprising multiple people, such as an institution or an association, that has a collective goal and is linked to an external environment.

Functional Level

Pertains to the specific, operational areas within an organization, including departments like marketing, finance, HR, and operations, focusing on specialized tasks and strategies.