Farmers' Industries Has Fixed Costs of $600000 and Variable Costs

question 66

Multiple Choice

Farmers' Industries has fixed costs of $600000 and variable costs are 60% of sales. How much will Farmers report as sales when its net income equals $60000?

• A) $1650000
• B) $1100000
• C) $1560000
• D) $396000

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Definitions:

Assembly Line

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.

Business Product

A result of manufacturing or production processes, offered by businesses to meet consumer needs or market demand, ranging from tangible goods to services.

Checkout Counter

A designated area or desk where customers pay for the goods or services they wish to purchase, typically found in retail stores.