Cunningham Inc

question 114

Multiple Choice

Cunningham Inc. sells MP3 players for $60 each. Variable costs are $40 per unit and fixed costs total $120000. What sales are needed by Cunningham to break even?

• A) $160000.
• B) $300000.
• C) $360000.
• D) $480000.

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Definitions:

10-Column Worksheet

An accounting tool used for drafting preliminary financial statements, consisting of columns for trial balances, adjustments, and balances.

Preparing

The act or process of making something ready for use or consideration, often referenced in financial, operational, or strategic contexts.

Work Sheet

A document used in accounting to gather information from ledger accounts for the preparation of financial statements.

Temporary Accounts

Accounts used to collect revenues, expenses, and dividends information which are then transferred to permanent accounts at the end of the accounting period.