CopperZ Company Has Variable Costs Which Are 40% of Its

question 39

Multiple Choice

CopperZ Company has variable costs which are 40% of its unit selling price and fixed costs of $30,000.How many sales will CopperZ report at its break-even point in dollars?

• A)$50,000
• B)$75,000
• C)$12,000
• D)$18,000

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Definitions:

Capital Constraints

Limitations on the amount of capital a company or economy can obtain, often leading to restrictions on growth and investment.

NPV Analysis

Net Present Value Analysis, a method of evaluating the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds, encompassing debt and equity.

Internal Rate

Often referred to as Internal Rate of Return (IRR), it is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.