Susan Co Has Total Variable Costs Equal to 40% of Sales

question 102

Multiple Choice

Susan Co. has total variable costs equal to 40% of sales. Fixed costs are $120,000. What is the breakeven point in revenues?

• A) $300,000
• B) $200,000
• C) $120,000
• D) Cannot be determined

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Definitions:

Thymine

A nitrogenous pyrimidine base found in DNA.

Carbohydrate

Organic compounds consisting of carbon, hydrogen, and oxygen, serving as a major source of energy in diets.

Lipid

A group of naturally occurring molecules that includes fats, waxes, sterols, fat-soluble vitamins (such as vitamins A, D, E, and K), monoglycerides, diglycerides, triglycerides, phospholipids, and others.

Nucleic Acid

A complex organic substance present in living cells, especially DNA or RNA, whose molecules consist of many nucleotides linked in a long chain, fundamental for the transmission of genetic information.