For Sanborn Co

question 103

Multiple Choice

For Sanborn Co., sales is $1,000,000, fixed expenses are $300,000, and the contribution margin per unit is $60. What is the break-even point?

• A) $1,666,667 sales dollars
• B) $500,000 sales dollars
• C) 16,667 units
• D) 5,000 units

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Definitions:

Confidence

The feeling or belief in one's abilities, qualities, or the reliability of something or someone.

Actual Value

The real, measured value of an object, property, or financial instrument, as opposed to its estimated or anticipated value.

Variable Allowances

Adjustments in time estimates or costs to accommodate changes in work conditions or processes.

Normal Time

The standard duration that a task or activity is expected to take under normal working conditions.