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:

Internet

A vast network of computers worldwide that allows for data exchange, communication, and access to web resources and services.

Intranet

A private network accessible only to an organization's staff, often used to share information, operational systems, or computing services within the organization.

Drag Gesture

An input method involving clicking and holding an object on a screen and then moving it to a new location.

Shortcut Menu

A contextual menu that appears when a user right-clicks on an element in a GUI, offering a list of actions relevant to the context of the click.