Sutton Company Produces Flash Drives for Computers, Which It Sells

question 136

Multiple Choice

Sutton Company produces flash drives for computers, which it sells for $20 each. The variable cost to make each flash drive is $6. During April, 700 drives were sold. Fixed costs for April were $2 per unit for a total of $1,400 for the month. How much is the monthly break-even level of sales in dollars for Sutton Company?

• A) $100
• B) $2,000
• C) $7,000
• D) $4,200

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Definitions:

Sell Signal

An indication, based on technical analysis or other factors, suggesting that it might be an advantageous time to sell a particular investment.

Trin Ratio

The Trin Ratio, also known as the Arms index, measures market sentiment by dividing the ratio of advancing and declining issues by the ratio of advancing and declining volume, often used to detect overbought or oversold conditions.

Technical Analysts

Specialists who evaluate stocks and securities by analyzing statistical trends, such as price movements and trading volume, to forecast future price behavior.

Bullish

An optimistic viewpoint or expectation that a particular asset, security, or the market as a whole will increase in value.