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

question 32

Multiple Choice

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

• A) 300,000
• B) 200,000
• C) 480,000
• D) Cannot be determined

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Definitions:

Economic Disruptions

Significant interruptions to the normal flow of goods, services, and capital, often caused by financial crises, natural disasters, or geopolitical events.

Trade Specialization

The economic practice where countries or regions focus on producing goods and services in which they have a comparative advantage, leading to increased efficiency and productivity.

Trade Surplus

Occurs when a country's exports exceed its imports during a specific time period, indicating a positive balance of trade.

Bilateral Trade Agreement

An agreement between two countries that lowers tariffs and trade barriers on most goods and services traded between them.