Stacker Requires Sales of $500,000 to Cover Its Fixed Costs

question 85

Multiple Choice

Stacker requires sales of $500,000 to cover its fixed costs of $100,000 and to earn net income of $80,000.What percent are variable costs of sales?

• A)36%
• B)2.77%
• C)20%
• D)64%

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties, often formalized by a contract.

Bargaining Position

The relative strength or advantage one party has in negotiations or deal-making scenarios.

Best Bargain

The most advantageous or favorable deal that a consumer can find when purchasing goods or services.

Non-Strategic View

An approach or perspective that does not consider long-term planning or competitive positioning.