If Fixed Costs Are $750,000 and Variable Costs Are 60

question 69

Multiple Choice

If fixed costs are $750,000 and variable costs are 60% of sales, what is the break-even point (in dollars) ?

• A) $1,875,000
• B) $1,250,000
• C) $1,666,667
• D) $1,350,000

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Definitions:

IAS 41

A global accounting guideline focused on managing financial records for farming activities, specifically regarding the conversion of biological assets, such as live plants and animals, into farm products.

Investment Property

Property (land or a building - or part of a building - or both) held to earn rentals or for capital appreciation or both, rather than for use in the production or supply of goods or services.

Government Grants

Funds provided by the government to businesses, non-profits, or individuals, typically for a specified purpose and often with conditions attached.

AASB 141

The Australian Accounting Standards Board standard related to Agriculture, guiding how agricultural activities and assets should be accounted for.