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:

RUPA

The Revised Uniform Partnership Act (RUPA) is a legal guideline adopted by several states to govern the formation, operation, and dissolution of partnerships.

Dissociation

The process by which a member's involvement in an entity's activities is terminated, either voluntarily or involuntarily.

Firm

A business organization, such as a partnership or corporation, engaged in commercial, industrial, or professional activities.

Associated

Linked or connected with something else, typically implying a relationship or affiliation between entities or ideas.