Old MacDonald Had a Farm with Expected Fixed Costs for Next

question 118

Multiple Choice

Old MacDonald had a farm with expected fixed costs for next year of $91,000. The projected selling price per bushel is $12, with variable costs of $5 per bushel.
How much revenue past the breakeven point does MacDonald have to earn to realize a pre-tax profit of $36,000 if variable costs drop to $3 per bushel?

• A) $61,718
• B) $169,333
• C) $48,000
• D) $54,000

---

Definitions:

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, usually defined as maximizing happiness and reducing suffering.

PR Professional

An individual specialized in public relations, responsible for handling communication between organizations and the public.

PR Ethics

The principles that guide the professional conduct and decision-making of public relations practitioners, focusing on honesty, transparency, and societal responsibility.

Social Movement Organizations (SMOs)

Groups that are part of the larger social movement and work towards societal change.